Su Kim has decided that Aus Bonds and Equities should be invested through index ETFs but...

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Su Kim has decided that Aus Bonds and Equities should be invested through index ETFs but the US equities will be invested through an active fund. She has selected three funds and conducts an excess return regression for each fund against the benchmark as follows: Fund 1 Fund 2 Fund 3 Intercept 0.50% 0.10% 0.80% p-values (Intercept) 0.29 0.15 0.21 Beta 1.1 0.9 0.8 p-values (Beta) 0.0001 0.002 0.00004 Standard Error of Regression 4% 5% 6% Required: 1. Explain, using the regression results from the table above, which fund manager(s) shows active fund management skills at 70% confidence level? 2. Explain which fund should be selected for the investment. Su Kim has decided that Aus Bonds and Equities should be invested through index ETFs but the US equities will be invested through an active fund. She has selected three funds and conducts an excess return regression for each fund against the benchmark as follows: Fund 1 Fund 2 Fund 3 Intercept 0.50% 0.10% 0.80% p-values (Intercept) 0.29 0.15 0.21 Beta 1.1 0.9 0.8 p-values (Beta) 0.0001 0.002 0.00004 Standard Error of Regression 4% 5% 6% Required: 1. Explain, using the regression results from the table above, which fund manager(s) shows active fund management skills at 70% confidence level? 2. Explain which fund should be selected for the investment.

Answer rating: 100% (QA)

Thank you for providing additional details Lets proceed with analyzing the regression results and an... View the full answer