You have been given the following return information for a mutual fund, the market index, and the risk free rate You also know that the return correlation between the fund and the market is 0 89 Year Fund Market Risk Free 2011 17 60 34 50 2 2012 25 10 20 50 4 2013 13 40 12 40 2 2014 6 60 8 40 5 2015 1 80 4 20 3 Calculate Jensens alpha for the fund, as well as its information ratio

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Question: You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.89.

Year	Fund		Market		Risk-Free
2011	17.60	%	34.50	%	2	%
2012	25.10		20.50		4
2013	13.40		12.40		2
2014	6.60		8.40		5
2015	1.80		4.20		3

Calculate Jensens alpha for the fund, as well as its information ratio.

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