Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock.

Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4LO

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Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock.

Input Data	Vogt Industries	Isher Corporation	Hedrock, Incorporated
Alpha	0.012	0.006	0.016
Beta	0.277	1.015	1.630
Standard Deviation	0.156	0.168	0.181
Residual Standard Deviation	0.117	0.048	0.113

Required:
Using the information in the table above, please calculate the information ratio for each stock.

(Use cells A5 to D8 from the given information to complete this question.)

	Vogt Industries	Isher Corporation	Hedrock, Incorporated
Information Ratio