User Account

All Pages

Calculate the sharpe ratio

Assignment Help Accounting Basics
Reference no: EM133118777

Question - We know the following data regarding three investment funds that invest in U.S. Equities:

 

FUND A

FUND B

FUND C

BENCHMARK

Profitability

15.50%

16.00%

18.50%

15.00%

Volatility

20.00%

24.00%

26.00%

23.00%

Beta

0,80

0,95

1,20

 

Tracking Error

6,00

4,50

13,00

 

Knowing that the return on the risk-free asset is 2%, it is requested:

1. Calculate the Sharpe ratio, Treynor ratio and Information ratio of the three funds

2. Based on the known data and the variables calculated in the section previously, justify in which fund it would be preferable to invest.

Reference no: EM133118777

Questions Cloud

Explain the purpose of the sharpe ratio : Explain the purpose of the Sharpe Ratio and how you interpret its outcome. Include the Sharpe Ratio formula, define each of its components, and provide a numeri
Explain the conservative discount rate : Using the conservative discount rate, what is the value of the tuition the day you start the law school?
Find the breaks in the mcc curve : If the company expects to retain $420,000 in earnings over the next year, find the breaks in the MCC curve.
Decompose the portfolio return into four components : The return on a mutual fund portfolio during the last few years was 35 %, when the return on the market portfolio was 20 %. The standard deviation of the portfo
Calculate the sharpe ratio : Knowing that the return on the risk-free asset is 2%, it is requested: Calculate the Sharpe ratio, Treynor ratio and Information ratio of the three funds
Discuss the main features of portfolio management services : Discuss the main features of portfolio management services and what does makes it different from mutual funds? Explain Briefly need long answer
Evaluating a new gold mine in south dakota : Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analys
What are the implications of patterns : What patterns do you see? What are the implications of these patterns?
Explain the three-stage model : Consider a stock, which is expected to pay a $1 dividend in one year. The year after, it will pay $2 for three years. After that, the dividends will grow at a c

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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