Calculate :  M2 measure T2 measure Information Ratio (appraisal ratio) Fund  Average return Standard Deviation Beta coefficient Unsystematic Risk A 0.240 0.220 0.800 0.017 B 0.200 0.170 0.900 0.450 C 0.290 0.380 1.200 0.074 D 0.260 0.290 1.100 0.026 E 0.180 0.400 0.900 0.121 F 0.320 0.460 1.100 0.153 G 0.250 0.190 0.700 0.120 Market 0.220 0.180 1.000 0.000 Risk free return 0.050   0.000

Q: alternatives с D B Alternatives alternatives have the following returns and standard deviations of…

A: The coefficient of variation (CV) is a statistical measure used to measure the relative variability…

Q: values. All other answers Risk-Adjusted Performance Measures s Sharpe Ratio be put ail Treynor's…

A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…

Q: Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10.

A: External rate of return is the modified form of internal rate of return in which it is assumed that…

Q: Given the forward rate ƒ3,6 = 5% and the forward rate £6,8 3%, calculate the forward rate ƒ3,8. Give…

A: A forward rate is a financial term used to describe the interest rate applicable to a financial…

Q: YYYYMM Return(Stk) Return(Mkt) Return(T-bill) 201601 -4.98% -10.18% 0.05% 201602 -2.07%…

A: Abnormal Return is the difference between the expected return by CAPM and expected return by…

Q: Asset M Asset N j P?? Return, ??   P?? Return, ??   1   0.25   10%     0.15   10%…

A: Standard deviation is calculated to know about the volatility of an asset, it is the square root of…

Q: FIND(x) FOR THE SHOWN CASH-FIOW DIAGRAMS USE:i=9% 0 600 21 800 2000 X=n.

A: The future value of a cash flow is the value of the cash flow at a particular interval in the future…

Q: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

Q: Risk-Adjusted Performance Measures Sharpe Ratio Treynor's Measure Information Ratio A 0.4750 -0.0082…

A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…

Q: Assume Model 2 with D₁ = $2 and r= 10%. Calculate different Po's with g = 0%, 1%, , 3%, 4%, 5%, 6%,…

A: Dividend Discount Model (DDM) is a method used to value a stock by estimating its future dividend…

Q: A financial analyst considers three funds. The funds' estimated returns depend on future economic…

A: OUTCOME PROBABILITY FUND M FUND N FUND P A 10.00% -10.00% -25.00% 10.00% B 30.00% 8.00% 10.00%…

Q: Morningstar's Risk-Adjusted Rating most closely resembles which measure? The Treynor Index Jensen's…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Assume there are only three risky assets in which to invest, A, B and C. The expected return and…

A: Here, SecurityReturnStandard DeviationStock A8%0.04Stock B10%0.05Stock C7%0.02

Q: The probability distribution of the returns of two assets, A and B, are shown in the table below.…

A: The combined variability of two variables is described by covariance. When there is a positive…

Q: What is the standard deviation of asset​ M?

A: Standard deviation tells us how much the expected vary from the actual result.

Q: Return on Asset D in State Return on Asset E in State Return on Asset F in State Boom 0.35 0.060…

A: Standard deviation of a security is a measure of risk of a security which denotes the variation in…

Q: The standard deviation of IWM return and  the standard deviation of EEM return?

A: Here, To Find: Standard deviation of IWM =? Standard deviation of EEM =?

Q: $1.20 1.30 0.8 0.9 1.1 Pulangan Geometrik = _% Geometric return= _%

A: To determine the geometric mean, we first need to compute the change in price using the formula…

Q: Use the following returns for X and Y. Returns Year X Y 1. 21.8% 26.4% 2. -16.8 -3.8 3. 9.8 28.4 4.…

A: Here, Note: Here, we are considering the given data as a sample data, hence applying the formula of…

Q: Pulangan Geometrik = __% Geometric return=_%

A: To determine the geometric mean, we first need to compute the change in price using the formula…

Q: find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate…

A: Here,Beta q is 1.25rf is 2%rm is 12%rq is 13.5%

Q: State of Economy Probability of State Return on Asset D in State Return on Asset E in State Return…

A: Expected Return Mean = sum of (Probability * Return)

Q: The series of returns of a single investment are presented as follows; Beginning value 100 115.0…

A: Given: Variables in the question: YearBeginning ValueEnd Value1100.0115.02115.0138.03138.0110.4

Q: Four assets have the following distribution of returns. Probability…

A: ACCORDING TO THE RULE,WE WILL ANSWER THE FIRST THREE SUBPARTS ONLY. FOR THE REMAINING SUBPARTS,…

Q: The accumulation function for fund X is given by: ax(t) = 1 + 0.5t. The accumulation function for…

A: We have the accumulation function for two funds. At a given time T, they have the same force of…

Q: The investor wants to invest in the purchase of an office building. He suggests he can rent it out…

A: Time value of money concept is based on the premise that money today has more value than the same…

Q: YYYYMM Return(Stk) Return(Mkt) Return(T-bill) 201601 -4.98% -10.18% 0.05% 201602 -2.07%…

A: Expected Return is the average return of the holding period return of the security or index.…

Q: Given the forward rate f3,6 = 6% and the forward rate f6,8 = 2%, calculate the forward rate f3,8.…

A: A forward rate is a financial term used to describe the interest rate applicable to a financial…

Q: How many internal rate of return IRRs (the maximum) are suggested by Descartes' rule of signs? 7,000…

A: For unconventional cash flows, Descartes' Rule of Signs states that the maximum number of Internal…

Q: What is the arithmetic mean of the following investme Assets at Beginning HPR Assets before Net…

A: PeriodValues 0 $ 100.001 $ 111.002 $ 125.443 $ 142.224 $ 123.695 $ 134.82To Find:Arithmetic mean

Q: Probability Return 0.35 -2% 0.35 12% 0.3 18% Expected return is ______ ?

A: The table is: Probability Return 0.35 -2% 0.35 12% 0.3 18%

Q: With respect to an investor's utility function expressed as: U = E(r) –Ao², which of the following…

A: Utility Function = Er-12Aσ2 where A is -4, 0 and 4

Q: M Dening investment and trade-in opening investment by 2 and ad ng closing investment from the

A: Answer :Option D. Subtracting closing investment from the opening and dividing by 2 is correct…

Q: Q1. What is investment? How time value of money, inflation and expected risk effects investment…

A: “Since you have posted multiple questions, we will solve first question or you. If you want any…

Q: Compare the moving VWAP and Moving Average in terms of their similarity and dissimilarity.

A: Volume weighted average price = price × volume ÷ total volume. It is analysis based tool helps to…

Q: ear Flow 0 -5000 1 2000 2 4000 3 -1500 4 3000 5 4000 6 -6000 7 9000

A: External rate of return is the modified form of internal rate of return in which it is assumed that…

Q: Calculate the expected value of the scenario. X₁ P(x₁) -$0.25 0.1 SO 0.5 $0.25 0.1 $0.50 0.3

A: Xi P(Xi)  $          -0.25 0.1  $              -   0.5  $           0.25 0.1  $…

Q: Match the following notations with their uniform series names 1. uniform series arithmetic gradient…

A: Uniform series of payments can be calculated by using compound interest factor table. Using compound…

Q: Expected return and standard deviation. Use the following information to answer the questions.…

A: Given:

Q: ouiput belowe penarted from regreseing Pund As excees returns on s ecs retums (BAP S00). Tetimate…

A: The Adjusted R squared: In a regression output, the adjusted R-square is a measure of the extent to…

Q: ■ PA P1 = & PB P1 = p=100] [p = 200] Find the expected pay off assets A and B under probability…

A: Expected payoff is the most likely payoff that is possible under given condition of uncertainty and…

Q: Given: D0 = $1 g = 3% P0 = $20 What is the required rate of return? a. 1.58% b. 8.51% c. 8.15% d.…

A: Last dividend (D0) = $1Growth rate (g) = 0.03Current stock price (P0) = $20Required rate of return =…

Q: 3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1…

A: Calculation: Formula snip:

Q: Consider the following POPULATION of returns: 5%, -4%, -3%, and 12%. What is the standard deviation…

A: Returns 5% -4% -3% 12% 6.50%

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.