A portfolio manager is evaluating the performance of a fund that has been managed for the past 20 years. The appraised value of the fund each year and the cash flow from the fund is shown are the following table. Portfolio Value ($000) Cash flow ($000) Year 0 $ 100 – Year 1 105 $ 2 Year 2 108 2 Year 3 110 2 Year 4 115 3 Year 5 120 3 Year 6 125 4 Year 7 130 4 Year 8 120 4 Year 9 100 2 Year 10 105 3 Year 11 110 4 Year 12 105 3 Year 13 110 4 Year 14 116 5 Year 15 125 6 Year 16 130 7 Year 17 135 7 Year 18 132 6 Year 19 135 7 Year 20 140 8 Required: Calculate the holding period return for the fund each year. Calculate arithmetic mean of the fund holding period returns for the 20 years. Calculate the geometric mean of the fund holding period returns for the 20 years. Calculate the standard deviation of the fund holding period returns. Use the population standard deviation. please help with question 4

A portfolio manager is evaluating the performance of a fund that has been managed for the past 20 years. The appraised value of the fund each year and the cash flow from the fund is shown are the following table. Portfolio Value ($000) Cash flow ($000) Year 0 $ 100 – Year 1 105 $ 2 Year 2 108 2 Year 3 110 2 Year 4 115 3 Year 5 120 3 Year 6 125 4 Year 7 130 4 Year 8 120 4 Year 9 100 2 Year 10 105 3 Year 11 110 4 Year 12 105 3 Year 13 110 4 Year 14 116 5 Year 15 125 6 Year 16 130 7 Year 17 135 7 Year 18 132 6 Year 19 135 7 Year 20 140 8 Required: Calculate the holding period return for the fund each year. Calculate arithmetic mean of the fund holding period returns for the 20 years. Calculate the geometric mean of the fund holding period returns for the 20 years. Calculate the standard deviation of the fund holding period returns. Use the population standard deviation. please help with question 4

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter9: Projecting Financial Statements

Section: Chapter Questions

Problem 11DQ

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	Portfolio
Year 0	$ 100	–
Year 1	105	$ 2
Year 2	108	2
Year 3	110	2
Year 4	115	3
Year 5	120	3
Year 6	125	4
Year 7	130	4
Year 8	120	4
Year 9	100	2
Year 10	105	3
Year 11	110	4
Year 12	105	3
Year 13	110	4
Year 14	116	5
Year 15	125	6
Year 16	130	7
Year 17	135	7
Year 18	132	6
Year 19	135	7
Year 20	140	8

Required:

Calculate the holding period return for the fund each year.
Calculate arithmetic mean of the fund holding period returns for the 20 years.
Calculate the geometric mean of the fund holding period returns for the 20 years.
Calculate the standard deviation of the fund holding period returns. Use the population standard deviation.

please help with question 4

Definition Definition Act of managing the funds of another individual, company, or institution to maximize their wealth within a given time. Portfolio management helps to achieve financial objectives by reducing the risk of loss.

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An Active manager of AMF Fund has delivered the following six -monthly returns in the last 5 Years versus the Benchmark NIFTY Calculate the Information Ratio & Interpret the same ? . Also calculate the annualized Information Ratio. ? Period (Semi Annual) Return of Fund % (Rp) NIFTY Return % (Rb) 1 4.5 5.5 2 3.25 3.75 3 7.25 6.5 4 2.45 2.15 5 -1.05 -1.25 6 -0.35 0.25 7 1.15 -2.5 8 5.45 5.75 9 3.9 4.2 10 4.8 -0.1
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	Portfolio
	Value ($000)	Cash flow ($000)
Year 0	$ 100	–
Year 1	105	$ 2
Year 2	108	2
Year 3	110	2
Year 4	115	3
Year 5	120	3
Year 6	125	4
Year 7	130	4
Year 8	120	4
Year 9	100	2
Year 10	105	3
Year 11	110	4
Year 12	105	3
Year 13	110	4
Year 14	116	5
Year 15	125	6
Year 16	130	7
Year 17	135	7
Year 18	132	6
Year 19	135	7
Year 20	140	8