Question: I am not sure if this answer is correct, can you see what you get prefferably with steps/in excel? You have been given the following
I am not sure if this answer is correct, can you see what you get prefferably with steps/in excel?
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.93 Year 2011 2012 2013 2014 2015 Fund 23. 60% 25.10 14.40 7.00 2.40 Market 44 . 50% 21.50 15.40 9.20 6.20 Risk-Free 1% 3 2 2 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) Jensen's alpha 3.72 % Information ratio 0.6052 You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.93 Year 2011 2012 2013 2014 2015 Fund 23. 60% 25.10 14.40 7.00 2.40 Market 44 . 50% 21.50 15.40 9.20 6.20 Risk-Free 1% 3 2 2 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) Jensen's alpha 3.72 % Information ratio 0.6052
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