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alex41 [277]
3 years ago
9

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: Sooner Market Portfo

lio Average return 20 % 11 % Standard reviations of returns 44 % 19 % Beta 1.8 1.0 Residual standard deviation 2.0 % 0.0 % The risk-free return during the sample period was 3%. Calculate the Jensen measure of performance evaluation for Sooner Stock Fund. Multiple Choice 4.00% 2.6% 8.67% 31.43% 37.14%
Business
1 answer:
Tom [10]3 years ago
3 0

Answer:

The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%

Explanation:

In order to calculate the  the Jensen measure of performance evaluation for Sooner Stock Fund we would have to calculate Jensen's Alpha as follows:

Jensen's Alpha = R(i) - [R(f) + {B x (R(m) - R(f))}]

Jensen's Alpha= 20% - [3% + {1.8 x (11% - 3%)}]

 Jensen's Alpha= 20% - [3% + 14.4%] = 20% - 17.4%

  Jensen's Alpha= 2.6%

The Jensen measure of performance evaluation for Sooner Stock Fund is 2.6%

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Does​ Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Fi
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Explanation:

I will give a basic hint to understanding this problem

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As such they can augment their benefit given what the adversary is doing.

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2 years ago
A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£ , the account is pay
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4 0
3 years ago
The supply of seats for a psychology class at 10 a.m. is the same as the supply of seats for the same class at 2pm LO5 MO1 There
alex41 [277]

Answer:

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Explanation:

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8 0
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