Problem 23-7The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year:BenchmarkRisk-freeFundReturnReturnrate14%11%2%15%12%17%14%20%15%20%14%22%15%14%13%Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 1011%10%12%11%9%9%c. What is the fund tracking error?d. What is the beta for the fund?e. What is Jensen's alpha for the fund?Required A2%2%2%2%2%2%2%Required:a. What is the Sharpe ratio for the fund and the benchmark?b. What is the Treynor ratio for the fund and the benchmark?2%2%Complete this question by entering your answers in the tabs below.Required B Required CWhat is the Sharpe ratio for the fund and the benchmark? (Do not round intermediate calculations. Round your final answer to2 decimal places.)Required D Required E

The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year: Risk-free Fund Return Benchmark Return rate 14% 11% 2% 15% 12% 2% 14% 2% 15% 2% 14% 2% 15% 2% 12% 2% 11% 2% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 17% 20% 20% 22% 14% 13% 11% 10% 9% 9% 2% 2% Required: a. What is the Sharpe ratio for the fund and the benchmark? b. What is the Treynor ratio for the fund and the benchmark? c. What is the fund tracking error? d. What is the beta for the fund? e. What is Jensen's alpha for the fund?

The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year: Risk-free Fund Return Benchmark Return rate 14% 11% 2% 15% 12% 2% 14% 2% 15% 2% 14% 2% 15% 2% 12% 2% 11% 2% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 17% 20% 20% 22% 14% 13% 11% 10% 9% 9% 2% 2% Required: a. What is the Sharpe ratio for the fund and the benchmark? b. What is the Treynor ratio for the fund and the benchmark? c. What is the fund tracking error? d. What is the beta for the fund? e. What is Jensen's alpha for the fund?

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...

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