Question: The average returns, standard deviations, and betas for Fund Y and the S&P500 are as follows: Average Return Standard Deviation Beta Fund Y 0.25 0.35

The average returns, standard deviations, and betas for Fund Y and the S&P500 are as follows:

Average Return

Standard Deviation

Beta

Fund Y

0.25

0.35

1.3

S&P500

0.14

0.20

1.0

The risk-free rate is 0.05. What is the M2 measure for Fund Y?

Answers should be expressed in decimal form rounded to the nearest ten thousandth (0.0001) - for example, enter 1.2345% as 0.0123. Intermediate results should not be rounded to less than 8 decimal places unless instructed otherwise.

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