You have been given the following return information for a mutual fund, the market index,...
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Finance
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .93.
Year
Fund
Market
Risk-Free
2015
23.60
%
44.50
%
1
%
2016
25.10
21.50
3
2017
14.40
15.40
2
2018
7.00
9.20
6
2019
2.40
6.20
2
Calculate Jensens alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.)
Jensen's alpha
Information ratio
Answer & Explanation
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