Calculate the average return on both the fund and the index

Assignment Help Financial Management
Reference no: EM132037974

In 2011-2015, mutual fund manager, Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2011 2012 2013 2014 2015 Fund ?1.3 +24.6 +40.6 +11.6 +0.4 Market index ?0.6 +18.0 +31.6 +10.9 ?0.4 Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM132037974

Questions Cloud

Sample standard deviation of the stock returns : What is the mean of the stock’s returns over the past 3 years minus the sample standard deviation of the stock’s returns from the past 3 years?
What was the geometric average annual return for the stock : What was the geometric average annual return for the stock over the past 4 years?
What is the enterprise value of the corporation : What is the enterprise value of the XYZ Corporation?
Standard deviation of the portfolio : What are the expected rate of return and standard deviation of the portfolio?
Calculate the average return on both the fund and the index : Calculate the average return on both the Fund and the index and the standard deviation of the returns on each.
Call option value of his perfect foresight : Martin has perfect foresight, and the call option value of his perfect foresight is $570,000.
Contribution of asset allocation to relative performance : What was the contribution of asset allocation to relative performance? What was her over or underperformance?
Find the company after-tax cost of debt : The company is in the 40% tax bracket. Find the company's after-tax cost of debt.
Calculate the expected rate of return and standard deviation : Calculate the expected rate of return and standard deviation for each investment.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to maturity of corporate bond

What is the yield to maturity of a corporate bond with 13 years to maturity,

  Calculate return on assets-calculate return on equity

Calculate Return on Assets. Calculate Return on Equity.

  Compute the npv of millers new product

The cost of capital for this project is 16%, and the relevant tax rate is 35%. Compute the NPV of Miller's new product.

  What is the maximum dividend per share that firm can pay

What is the maximum dividend per share that the firm can pay? Indicate the effects of an $80,000 cash dividend on stockholders' equity.

  Discuss the various types of healthcare financing options

Therefore, discuss the various types of healthcare financing options for the for-profit and not-for-profit healthcare organizations. Next, add-in the advantages/disadvantages for each, but first from the investor's perspective, and then from the issu..

  What is approximate real rate of interest

Treasury bills are currently paying 9% and the inflation rate is 3.6%. What is the approximate real rate of interest? What is the exact real rate?

  Calculate the net financial impact

Calculate the Net Financial Impact of Buying the 100 stocks and the hedging with futures.

  Compute the current yield and capital gains yield

Compute the (a) current yield and (b) capital gains yield that the bond will generate this year.

  How given affect both the business and its wider stakeholder

Steve has recently bought a pub in a quiet residential area of town.- State how each of the following could affect both the business and its wider stakeholders.

  Expected return and standard deviation of portfolio

The expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Inc., and 50 percent invested in Down Co. are the following: 3 Doors, Inc. Down Co. Expected return, E(R) 19 % 11 % Standard deviation, σ 52 41 What is ..

  Value of operations of constant growth firm

EMC Corporation has never paid a dividend. Its current free cash flow of $550,000 is expected to grow at a constant rate of 4.9%. The weighted average cost of capital is WACC = 12.25%. Calculate EMC's estimated value of operations.

  Variation of the trader profit with the asset price

Draw a diagram showing the variation of the trader’s profit with the asset price.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd