Compute fund CAPM alpha over the trailing

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Reference no: EM132973154

Question - You are interested in evaluating the historical 1-year performance of Vanguard Growth Index Fund (VUG). You have collected the following data:

Standard deviation of fund's monthly return (%): 6.5

Fund's correlation with the S&P500: 0.9

Fund's actual return, TTM (%): 32.0

S&P500 actual return, TTM (%): 25.0

Standard deviation of monthly returns on S&P500 (%): 5.0

Risk-free rate, annual (%): 0.2

Required - Compute fund's CAPM alpha over the trailing 12 months.

Reference no: EM132973154

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