Use the table below to answer the following sections (I, II,) If the long term Commonwealth bonds is 2 50 p a , the return (standard deviation) for market index is 9 65 p a (17 p a ) Fund Fund Fund Fund STR SHP ENT GLX Average Return ( p a ) 10 50 20 70 12 30 18 40 Standard deviation ( p a ) 3 40 5 60 7 40 5 85 Beta 1 00 1 97 0 73 1 19 Required I Which fund has the lowest overall risk versus its return II Which funds following Jensens alpha outperformed the market

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Question: Use the table below to answer the following sections (I, II,). If the long-term Commonwealth bonds is 2.50%p.a., the return (standard deviation) for market index

Use the table below to answer the following sections (I, II,). If the long-term Commonwealth bonds is 2.50%p.a., the return (standard deviation) for market index is 9.65% p.a. (17% p.a.)

	Fund	Fund	Fund	Fund
	STR	SHP	ENT	GLX
Average Return (% p.a.)	10.50	20.70	12.30	18.40
Standard deviation (% p.a.)	3.40	5.60	7.40	5.85
Beta	1.00	1.97	0.73	1.19

Required

I. Which fund has the lowest overall risk versus its return?

II. Which funds following Jensens alpha outperformed the market?

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