Assuming the risk-free return as 5 per cent. Calculate the differential return (Jensen Ratio) for the two funds.

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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Example 13: Information regarding two mutual funds and marks inder ara
given below:
Standard Deviation
(Per cent)
Return
Fund
(Per cent)
Beta
Franklin Temple ton
14
30
0.72
Standard Chart
32
70
1.33
Market Index
20
48
1.00
Assuming the risk-free return as 5 per cent. Calculate the differential return
(Jensen Ratio) for the two funds.
Transcribed Image Text:Example 13: Information regarding two mutual funds and marks inder ara given below: Standard Deviation (Per cent) Return Fund (Per cent) Beta Franklin Temple ton 14 30 0.72 Standard Chart 32 70 1.33 Market Index 20 48 1.00 Assuming the risk-free return as 5 per cent. Calculate the differential return (Jensen Ratio) for the two funds.
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