Question

A mutual fund has earned an annual average return of 15% over the last 5 years....

A mutual fund has earned an annual average return of 15% over the last 5 years. During that time, the average risk-free rate was 2% and the average market return was 12% per year. The correlation coefficient between the mutual fund’s and market’s returns was 0.7. The standard deviation of returns was 50% for the mutual fund and 22% for the market. What was the fund’s CAPM alpha?

a) -2.9%

b) -1.3%

c) 0.3%

d) 1.9%

e) 3.5%
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over the last 5 years. During that time, the average risk-free rate was 2% and the average market return was 12% per year. The correlation coefficient between the mutual fund’s and market’s returns was 0.7. The standard deviation of returns was 45% for the mutual fund and 22% for the market. What was the fund’s CAPM alpha?
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over the last 5 years. During that time, the average risk-free rate was 2% and the average market return was 12% per year. The correlation coefficient between the mutual fund’s and market’s returns was 0.7. The standard deviation of returns was 45% for the mutual fund and 22% for the market. What was the fund’s CAPM alpha?
A mutual fund has earned an annual average return of 15% over the last 5 years....
A mutual fund has earned an annual average return of 15% over the last 5 years. During that time, the average risk-free rate was 2% and the average market return was 12% per year. The correlation coefficient between the mutual fund’s and market’s returns was 0.7. The standard deviation of returns was 30% for the mutual fund and 22% for the market. What was the fund’s CAPM alpha?
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period?
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period? a) 0.47 b) 0.51 c) 0.53 d) 0.56 e) 0.58
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 15% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period? a) 0.47 b) 0.51 c) 0.53 d) 0.56 e) 0.58
A mutual fund has earned annual returns of 11%, -5% and 33% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 33% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period?
A mutual fund has earned annual returns of 11%, -5% and 27% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 27% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period?
A mutual fund has earned annual returns of 11%, -5% and 21% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 21% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period? a) 0.47 b) 0.51 c) 0.53 d) 0.56 e) 0.58
A mutual fund has earned annual returns of 11%, -5% and 27% over the past three...
A mutual fund has earned annual returns of 11%, -5% and 27% over the past three years. If the average risk-free rate during that time was 2% per year, what was this fund's Sharpe Ratio during that time period? a) 0.47 b) 0.51 c) 0.53 d) 0.56 e) 0.58
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT