a. Using the data in the table below and calculate the following performance measures iv. M-squared measurev. T-squared measure, andvi. Appraisal ratio (information ratio)Average StandardBetaUnsystematicFundReturnDeviation CoefficientRisk0.0170.450A0.2400.2200.8000.9001.2001.100B0.2000.170C0.2900.3800.2900.074D0.2600.026E0.1800.4000.9000.121F0.3200.4601.1000.153G0.1200.0000.2500.1900.1800.700Market0.2201.000Risk-freereturn0.0500.000

Formulas used for M-squared measure, T-squared measure and Appraisal ratio: M-squared measure=Market…

Answered: a. Using the data in the table below…

Business

Finance

a. Using the data in the table below and calculate the following performance measures

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 6DQ

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Question

a. Using the data in the table below and calculate the following performance measures

iv. M-squared measure
v. T-squared measure, and
vi. Appraisal ratio (information ratio)
Average Standard
Beta
Unsystematic
Fund
Return
Deviation Coefficient
Risk
0.017
0.450
A
0.240
0.220
0.800
0.900
1.200
1.100
B
0.200
0.170
C
0.290
0.380
0.290
0.074
D
0.260
0.026
E
0.180
0.400
0.900
0.121
F
0.320
0.460
1.100
0.153
G
0.120
0.000
0.250
0.190
0.180
0.700
Market
0.220
1.000
Risk-free
return
0.050
0.000

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