In the last quarter of 2017, a group of 64 mutual funds had a mean return of 4.2% with a standard deviation of4.9%. If a Normal model can be used to model them, what percent of the funds would you expect to be ineach region? Use the 68-95-99.7 rule to approximate the percentages rather than using technology to find thevalues more precisely. Be sure to draw a picture first.a) Returns of 9.1% or morec) Returns between - 10.5% and 18.9%b) Returns of 4.2% or lessd) Returns of more than 14.0%

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Answered: In the last quarter of 2017, a group of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. Year 2015 2016 2017 2018 2019 Fund -17.0% Sharpe ratio Treynor ratio 25.1 13.3 6.4 -1.74 Market -33.5% 20.4 12.1 8.0 -3.2 Risk-Free 2% 6 2 5 3 What are the Sharpe and Treynor ratios for the fund? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2011 2012 2013 2014 2015 Fund -15.2% 25.1 12.4 6.2 -1.2 Market -24.5% 19.5 Jensen's alpha Information ratio 9.4 7.6 -2.2 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) Risk-Free 1% 3 2 4 2 %
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Last year, two mutual funds, OHH and FLL, reported the same return and standard deviation, but OHH's beta was higher than FLL's beta. Based on the Sharpe measure, which mutual fund performed better last year? A. FLL B. OHH C. They had the same performance. D. Undetermined because their alphas are unknown.
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You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 97. Tear 2015 2016 2017 2018 2019 Fund -15.8% 25.1 13.1 7.6 -1.62 Sharpe ratio Treynor ratio Market -31.50 20.2 11.5 8.0 -3.2 Risk-Free. 39 5 2 5 3 What are the Sharpe and Treynor ratios for the fund? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
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