The Ubuntu fund is a recently formed and managed fund that has a beta of 1.2 and the residual standard deviation of 1%. The market index average return is 18% with the standard deviation and residual standard deviation of 21% and 0% respectively. The market risk premium is 0.12. The average market returns are 75% of the Ubuntu fund average returns and the standard deviation of the Ubuntu fund is 5% in excess of that of the market.

 

Calculate the information ratio for Ubuntu fund?

Answer rating: 100% (QA)

Information ratio excess retorn tracking error Excess retain expected return of ubuntu fund exp... View the full answer