3. Consider the following data: Expected Return Standard Deviation Russell Fund Windsor Fund S&P Fund 16% 14% 12% 12% 10% 8% The correlation between the returns on the Russell Fund and the S&P Fund is .7. The rate on T-bills is 6%. Which of the following portfolios would you prefer to hold in combination with T-bills and why? (a) Russell Fund (b) Windsor Fund (c) S&P Fund (d) A portfolio of 60% Russell Fund and 40% S&P Fund.

You wish to evaluate which of the two equity funds delivered a better risk adjusted return in terms of Sharpe ratio with the risk free rate currently at 1.58% UIT Fund                                                      Fund Return                                                       Standard Deviation Equity Fund A                                            8.60%                                                                    20.12% Equity Fund B                                             8.91%                                                                    18.12%   Calculate the Sharpe ratios for both equity funds A and B and state which fund had superior risk-adjusted performance during this period, as measured by the Sharpe ratio

Calculate the returns as per sharpe's, treynor and jensen performance measures and comment on the best investment

he correlation between the returns on the Russell Fund and the S&P Fund is 0.7.The rate on T-bills is 6%.Question: Which of the following portfolios would you prefer to hold in combination with T-bills and why?a) WindRussell Fundb) Windsor Fundc) S&P Fundd) A portfolio of 60% Russell Fund and 40% S&P Fund.Expected Return Standard DeviationRussell Fund 16% 12%Windsor Fund 14% 10%S&P Fund 12% 8%

The average returns, standard deviation and betas for three funds and the S&P are given below. The risk-free rate is 3%. Use Fund A the risk-free asset to create a complete portfolio that has the same standard deviation as the market portfolio. What is the expected return of this complete portfolio?   Fund Avg. Return Std. Dev Beta A 16% 30% 1.1 B 18% 25% 1.2 C 22% 35% 1.3 S&P 500 14% 20% 1.0

You want to evaluate two mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 5.00%, and the average return on the market portfolio is 18.00%. The average returns, residual standard deviations, and betas for the three funds are given below. Average Return Fund A 18% Fund B 21% Residual Standard Deviation 4.00% 27% 1.25% 27% Standard Deviation What is Fund A's Sharpe Ratio? [Select] Beta 0.75 1.00 What is Fund A's Information Ratio? [Select]

Consider the following data:Expected Return Standard DeviationRussell Fund 16% 12%Windsor Fund 14% 10%S&P 500 Fund 12% 8%The correlation between the returns on the Russell Fund and the S&P 500 Fund is 0.7. The T-Bill rate is 6%. Which of the following portfolios would you prefer to hold in combination with T-bills and why?(a) Russell Fund(b) Windsor Fund(c) S&P 500 Fund(d) A portfolio of 60% Russell Fund and 40% S&P 500 Fund.

D5)

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Đ The risk free rate is 3%. Calculate and rank the following funds using Jensen's Alpha, Treynor measure, Sharpe ratio and M Fund 4 5.82% Market Index 7.60% Fund 1 Fund 2 Fund 3 Return 6.45% 8.96% 9.44% 0.88 1.02 1.38 0.80 1% Beta Std. dev. 2.74% 4.54% 3.72% 2.64% 2.80%