1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kitty [74]
3 years ago
13

The following data are available relating to the performance of Wildcat Fund and the market portfolio: Wildcat Market Portfolio

Average return 18 % 15 % Standard deviations of returns 25 % 20 % Beta 1.25 1.00 Residual standard deviation 2 % 0 % The risk-free return during the sample period was 7%. What is the information ratio measure of performance evaluation for Wildcat Fund
Business
1 answer:
alekssr [168]3 years ago
5 0

Answer:

50.0%

Explanation:

The computation of the information ratio is as follows

Information ratio = Alpha ÷ residual standard deviation

where,

Alpha is

= Average rate of return - required rate of return

The average rate of return is 18%

And the required rate of return is

= Risk-free rate + Beta × (Market rate of return - Risk-free rate)

= 7% + 1.25 × (15% - 7%)

= 17%

So, the alpha is

= 18% - 17%

= 1%

Therefore the information ratio is

= 1% ÷ 2%

= 50.0%

You might be interested in
If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to _____
snow_tiger [21]

Answer: The correct option is "c.exercising an in-the-money put option".

Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.

because he would be paying the debt with the participation in the equity of the company.

3 0
3 years ago
Can a manager yell at employees in front of customers answers
Setler [38]

Can you yell at your kids infront of other people. The answer is yes :)

5 0
3 years ago
2. You hear through the grapevine that one of your best employees is looking for another job. What should you do?
Tcecarenko [31]
Please provide context for the first part??? I'm intrigued as to why the employer is listening on his employees through grapevines ahahah.

I assume this relates to the topic of motivation in the workplace, so you should search up types of employee motivation. These include increasing wages, decreasing work hours, and providing more benefits (more days off/free family vacations/free education for their children and such).
7 0
3 years ago
What is the full form of (GAAP)​
charle [14.2K]
Answer: Generally Accepted Accounting Principles (GAAP or US GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting

Explaination .: hope this is what you were looking for
3 0
3 years ago
Read 2 more answers
A decrease in the opportunity cost of steel production will:
Molodets [167]
Will make suppliers more likely to produce steel , thus shifting the supply curve to the right
8 0
3 years ago
Other questions:
  • Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use? Assume
    14·1 answer
  • EXCESS CAPACITY Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed
    14·1 answer
  • At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.
    13·1 answer
  • Company policy for internal control should include all of the following except
    14·1 answer
  • Please help! The marginal revenue product of the second worker is
    10·1 answer
  • The following labor standards have been established for a particular product:Standard labor hours per unit of output 4.3 hoursSt
    14·1 answer
  • Liam, an employee of Centaurs Inc., is part of a new product development team that operates in a completely different manner fro
    10·1 answer
  • One disadvantage of a partnership is lower monitoring costs. limited liability. difficulty raising funds. it permits greater spe
    10·1 answer
  • ​(Annuity payments) Calvin Johnson has a 5000 debt balance on his Visa card that charges 12.9 percent APR compounded monthly. In
    12·2 answers
  • Apart from the extent of the re-engineering, the principal factors that affect re-engineering costs are: The quality of the soft
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!