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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Question
The average return, standard deviation, and beta for Fund A is given below along with data for the S&P 500 Index.
| Fund | Average Return | Standard Deviation | Beta |
| A | 25.7% | 29% | 1.3 |
| S&P 500 | 17.9% | 20% | 1 |
| Risk-free | 3.8% |
Calculate the M2 measure of performance for Fund A.
Use the correct sign if the answer is negative! Example: -1.23
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