Question: long-term Commonwealth bonds rate is 2.50%p.a.the return (standard deviation) for market-index is 9.65% p.a. (17% p.a.) Fund STR Fund SHP Fund ENT Fund GLX Average

long-term Commonwealth bonds rate is 2.50%p.a.the return (standard deviation) for market-index is 9.65% p.a. (17% p.a.)

Fund STR Fund SHP Fund ENT Fund GLX
Average Return (% p.a.) 10.50 20.70 12.30 18.40
Standard deviation (% p.a.) 3.40 5.60 7.40 5.85
Beta 1.00 1.97 0.73 1.19

Required

I. Which fund has the lowest overall risk versus its return?

II. Which funds following Jensens alpha outperformed the market?

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