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Your asset is composed of 50% stocks and 50% cash. The market's allocation between stocks and cash during the period was a constant 97% and 3% respectively. Risk free rate is 12%.
One year trailing returns:
Fund A
Return: 10.2%
Standard Deviation: 37%
Beta: 1.1
Market
Return: -22.5%
Standard Deviation: 44%
Beta: 1
a) What is the Jensen's alpha of Fund A
b) What is the Sharpe Measure of Fund A?
c) M squared of Fund A
d) Treynor Measure of Fund A
e) T squared of fund A
f) Explain whether the Fund A underperformed, equaled, or outperformed the market index benchmark. By which measure did such fund outperform the benchmark market index?
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