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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