Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Fidelity FSLCX fund has an average return of 13%, a tracking error of 5%, and an information ratio of 0.25. It's benchmark, the R2000,

The Fidelity FSLCX fund has an average return of 13%, a tracking error of 5%, and an information ratio of 0.25. It's benchmark, the R2000, has a standard deviation of excess return equal to 22%. The risk-free rate is 2%. 



What is the Sharpe ratio of the R2000?

Step by Step Solution

3.48 Rating (132 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the Sharpe ratio of the R2000 we need to know its excess return Since we are given its ... blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Statistics Communicating With Numbers

Authors: Sanjiv Jaggia, Alison Kelly

1st Edition

78020549, 978-0078020544

More Books

Students also viewed these Finance questions

Question

Salary (if known)

Answered: 1 week ago