A fund has employed three investment managers, each of whom is responsible for investing in...

80.2K

Verified Solution

Question

Finance

A fund has employed three investment managers, each of whom is responsible for investing in one-third of all asset classes so that the fund has a well-diversified portfolio. Information about the managers is given below.

Manager Ave. Return (%) (%)
X 6 10 1.1
Y 11 20 0.9
Z 12 25 1.5
S&P 500 (M) 7.5 18 1
Risk-free rate (Rf) 3

Using raw returns, which manager has the best performance?

Question 5 options:

Manager X

Manager Y

Manager Z

Not enough information given.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students