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Calculate the annualized return of the portfolio

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Reference no: EM133122033

Consider the following table which provides a comparison of the returns for a portfolio and its benchmark.   Note: the numbers in red are negative

Year

Portfolio Return

Benchmark Return

0

 

 

1

22.65%

22.59%

2

8.97%

9.08%

3

-32.51%

-30.44%

4

23.07%

18.87%

5

49.66%

46.22%

Return

 

 

Alpha

 

 

Sum

 

 

Tracking Error

 

 

Information Ratio

 

 

Required

  1. Calculate the annualized return of the portfolio and the benchmark in percentage terms to 2 decimal places
  2. Calculate the portfolio alpha in percentage terms to 2 decimal places
  3. Calculate the tracking error of the portfolio in percentage terms to 2 decimal places
  4. Calculate the information ratio of the portfolio to 2 decimal places

Reference no: EM133122033

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