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.
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
Section: Chapter Questions
Problem 1PS
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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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