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.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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            
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