Question: Problem 2 3 - 7 The following data is reported for a fund and an appropriate benchmark as well as the risk - free rate

Problem 23-7
The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year:
Fund Return Benchmark Return Risk-free rate
Year 110%7%2%
Year 224%21%2%
Year 326%23%2%
Year 429%24%2%
Year 529%23%2%
Year 630%23%2%
Year 721%19%2%
Year 819%17%2%
Year 916%14%2%
Year 1014%13%2%
Required:
a. What is the Sharpe ratio for the fund and the benchmark?
b. What is the Treynor ratio for the fund and the benchmark?
c. What is the fund tracking error?
d. What is the beta for the fund?
e. What is Jensens alpha for the fund?

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