(10 POINTS) Consider the following funds whose expected returns and volatilities are given in the following table: \table [[Type of fund, Er,, o,, management fee (f) 5. (10 POINTS) Consider the following funds whose expected returns and volatilities are given in the following table: Type of fund Bio tech fund (B) Er σi management fee (f) .40 .60 .04 Critical minerals fund (C) .26 .40 .03 Market portfolio (M) .18 .24 0 where the management fee (f) is the percentage fee for holding the fund. The risk-free rate is 0.04.Is this situation compatible with the CAPM? Justify your answer.

The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year: Benchmark Return 19% 20% 22% 23% 22% 22% 18% 16% 13% 12% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Required A Fund Return 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? 22% 23% 25% 28% 28% 29% 20% 18% 15% 13% Complete this question by entering your answers in the tabs below. Fund Benchmark Required B Risk-free rate 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Required C Sharpe Ratio What is the Sharpe ratio for the fund and the benchmark? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Required D Required E

● Following results were obtained for the period of six months ending September 2022. Birla Sundaram Sun Nifty Rf Rp 25.38 36.28 45.56 36.74 9.00 Sigma 4.0 6.86 4.31 3.69 Beta 0.23 0.52 0.63 1.00 Using inputs, rank the funds according to the predictive ability of the fund's manager.

The following data is reported for a fund and an appropriate benchmark as well as the risk-free rate each year:     Fund Return Benchmark Return Risk-free rate Year 1 22% 19% 2% Year 2 23% 20% 2% Year 3 25% 22% 2% Year 4 28% 23% 2% Year 5 28% 22% 2% Year 6 29% 22% 2% Year 7 20% 18% 2% Year 8 18% 16% 2% Year 9 15% 13% 2% Year 10 13% 12% 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?

Q4. Describe the typical organization of a buyout fund.

In the above $110K allocation problem, you decided to allocate 30% weight in A, 50% weight in B, 20% weight in C, and you want to find its AVG return. Which of the following is the appropriate method to find the mean (AVG) return on the $100K fund invested?   a. Weighted Average (WAVG )   b. Simple Average   c. Geometric Average   d. Arithmetic Average

The average management fee for mutual funds ranges between the fund's assets. a) 0.50 and 2 Ob) 1.5 and 3 c) 3 and 4 d) 5 and 6 1/2 e) 7 and 8 1/2 percent of

It measures how much rate of return the fund manager/fund generates per unit of systematic risk (beta)? a.PSE b.Jensen Index    c.Treynor Index     d. Sharpe Index

The average return, standard deviation, and beta for Fund A is given below along with data for the S&P 500 Index. Fund Average Return Standard Deviation Beta A 14% 28.5% 1.7 S&P 500 17.6% 19.4% 1 Risk-free 4.8%       Calculate the Treynor measure of performance for Fund A. Convert percentages to decimal places before calculating your answer. ENTER your answer using FOUR DECIMAL places. Example: 0.1234

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