need help on part C for question 5

Question 5, Answer all parts I. Explain why an actively managed fund might be 'searching for positive alpha. [10 marks) I. Consider the following information about the performance of two fund managers d 2016: Manager A Manager B Market index 9.00% Return Standard deviation of return Beta 12.50% 25% 1.4 7.60% 17% 0.8 18% The risk-free rate of interest was 2% (a) Calculate and interpret the Sharpe ratio for each manager and for the market inde [5.5 marks] [5.5 marks] 8 marks (b) Calculate and interpret the Treynor measure for each managers and for the market index. (c) Explain the features of the M2 measure, and discuss whether or not both managers outperform the market based on this measure. lI. You are given the following information on the performance of a fund and on the market: Return on the portfolio r,-16%, total risk of the portfolio ,-9%; beta of the portfolio .- 0.75, return on the market rm-10%, total risk of the market m_ 6%, and the risk-free rate of interest r= 4%. The client-desired beta is given as .-0.65. Decompose the portfolio's total return to identify the sources of the fund manager's performance. Interpret your results. [11 marks] IV. Consider an equity portfolio, which had a value of 105m at the beginning of April 2017 A further 8m was deposited into the portfolio halfway through the month (i.e. on April 15) By the end of the month, the portfolio was valued at 120m. (a) Calculate and interpret the 'unadjusted return on the portfolio for the month. 12 marks] (b) Estimate and interpret the money-weighted rate of return on the portfolio for the month. (c) If the portfolio was valued at 116m immediately before the 8m deposit was made on 4 marks] Anril 15th calculate and into Question 5, Answer all parts I. Explain why an actively managed fund might be 'searching for positive alpha. [10 marks) I. Consider the following information about the performance of two fund managers d 2016: Manager A Manager B Market index 9.00% Return Standard deviation of return Beta 12.50% 25% 1.4 7.60% 17% 0.8 18% The risk-free rate of interest was 2% (a) Calculate and interpret the Sharpe ratio for each manager and for the market inde [5.5 marks] [5.5 marks] 8 marks (b) Calculate and interpret the Treynor measure for each managers and for the market index. (c) Explain the features of the M2 measure, and discuss whether or not both managers outperform the market based on this measure. lI. You are given the following information on the performance of a fund and on the market: Return on the portfolio r,-16%, total risk of the portfolio ,-9%; beta of the portfolio .- 0.75, return on the market rm-10%, total risk of the market m_ 6%, and the risk-free rate of interest r= 4%. The client-desired beta is given as .-0.65. Decompose the portfolio's total return to identify the sources of the fund manager's performance. Interpret your results. [11 marks] IV. Consider an equity portfolio, which had a value of 105m at the beginning of April 2017 A further 8m was deposited into the portfolio halfway through the month (i.e. on April 15) By the end of the month, the portfolio was valued at 120m. (a) Calculate and interpret the 'unadjusted return on the portfolio for the month. 12 marks] (b) Estimate and interpret the money-weighted rate of return on the portfolio for the month. (c) If the portfolio was valued at 116m immediately before the 8m deposit was made on 4 marks] Anril 15th calculate and into