Problem 13-4 Information Ratio (LO1, CFA5) You are given the following information concerning three portfolios, the market portfollo, and the risk-free asset Portfolio 2 Market Risk-free 12.50% 11.50 7.10 10.50 6.20 Information ratio ºp 34.00% 29.00 19.00 24,00 e op 1.50 1.20 0.80 1.00 Assume that the tracking error of Portfolio X is 10.50 percent. What is the information ratio for Portfolio X? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places.
Problem 13-4 Information Ratio (LO1, CFA5) You are given the following information concerning three portfolios, the market portfollo, and the risk-free asset Portfolio 2 Market Risk-free 12.50% 11.50 7.10 10.50 6.20 Information ratio ºp 34.00% 29.00 19.00 24,00 e op 1.50 1.20 0.80 1.00 Assume that the tracking error of Portfolio X is 10.50 percent. What is the information ratio for Portfolio X? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Problem 13-4 Information Ratio (LO1, CFA5)
You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:
Portfolio
X
Y
2
Market
Risk-free.
Rp
12.50%
11.50
7.10
10.50
6.20
Information ratio
ºp
34.00%
29.00
19.00
24.00
0
1.50
1.20
0.80
1.00
0
Assume that the tracking error of Portfolio X is 10.50 percent. What is the information ratio for Portfolio X?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4
decimal places.
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