Solution-What is the manager alpha

What is the manager alpha

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A fund manager tells you that his fund has expected returns of 12%, that his fund's correlation with the market is 0.50, and that the volatility of his fund's return is 30%. The risk-free rate is 3%, the market risk premium is 6%, and the volatility of the market is 20%. If what he's saying is true, what is the manager's alpha?
A fund manager tells you that his fund has expected returns are a measly 5%. But his fund's return has no correlation with the market's return. The risk-free rate is 3%, the market risk premium is 6%, and the volatility of the market is 20%. If what he's saying is true, what is the manager's alpha?

Reference no: EM132403363

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What is the manager alpha

Reference no: EM132403363

Reference no: EM132403363

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