Calculate sharpe ratio for stock a and the market

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Using the information in the table calculate information ratio. Assume that the idiosyncratic risk for stock A is 8.25 percent. 

 

Average return

Beta

Standard deviation

Stock A

14.5 %

1.15

30 %

Market

11.8 %

1

20 %

Treasury Bills

4.8 %

0

0

2. Calculate Sharpe ratio for stock A and the market

3. Treynor ratios for both the market and A

4. Calculate Jensen's measure of alpha for stock A

5. Calculate M-Squared 

6. Calculate T-Squared for stock A

Reference no: EM133119598

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