H4 You have been given the following return informatlon for a mutual fund, the market index, and the risk-free rate. You also know that thereturn correlation between the fund and the market is .97.YearFundMarketRisk-Free201520162017-18.201-35.50N2125.1020.6012.7013.50220186.808.40-4.2062019-1.863Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as apercent rounded to 2 decimal places. Round the ratio to 4 decimal places.)Jensen's alphaInformation ratio

The Jensen's alpha is also known as Alpha and it measure is the difference between the person…

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. Fund -18.20 Year Market Risk-Free 24 2015 2016 -35.50 20.60 25.10 5 2017 13.50 12.70 2 2018 6.80 8.40 2019 -1.86 -4.20 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.) Jensen's alpha Information ratio

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. Fund -18.20 Year Market Risk-Free 24 2015 2016 -35.50 20.60 25.10 5 2017 13.50 12.70 2 2018 6.80 8.40 2019 -1.86 -4.20 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.) Jensen's alpha Information ratio

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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