You are the manager of a mutual fund. The following table reflects the activity of the fund
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You are the manager of a mutual fund. The following table reflects the activity of the fund during the six months. Assume the T-bill rate is 3% (APR, monthly compunding)
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Monthly Data (%, measured at end of month) Feb Mar Apr -5.1 8.2 -4.2 Jan 1.7 May 1.5 Jun 1.8 HPR (%) A. Calculate the arithmetic average monthly return on the fund. B. Calculate the geometric average monthly return on the fund. C. Calculate the standard deviation of the monthly returns. F. What is the monthly Sharpe ratio? G. What is the annualized Sharpe ratio? D. What is the annualized average return for this fund? E. What is the annualized standard deviation of return for this fund? Monthly Data (%, measured at end of month) Feb Mar Apr -5.1 8.2 -4.2 Jan 1.7 May 1.5 Jun 1.8 HPR (%) A. Calculate the arithmetic average monthly return on the fund. B. Calculate the geometric average monthly return on the fund. C. Calculate the standard deviation of the monthly returns. F. What is the monthly Sharpe ratio? G. What is the annualized Sharpe ratio? D. What is the annualized average return for this fund? E. What is the annualized standard deviation of return for this fund?
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To calculate various performance metrics for the mutual fund we can follow these steps A Calculate the arithmetic average monthly return AAMR AAMR HPR... View the full answer
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