Homework Help is Here – Start Your Trial Now!
Business
Finance
What are the Sharpe and Treynor ratios for the fund? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.

What are the Sharpe and Treynor ratios for the fund? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question
**Problem 13-19 Performance Metrics (LO1, CFA5)** You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. | Year | Fund | Market | Risk-Free | |------|-------|--------|-----------| | 2018 | -15.8%| -31.5% | 3% | | 2019 | 25.1% | 20.2% | 5% | | 2020 | 11.5% | 8.0% | 2% | | 2021 | 7.6% | 8.5% | 3% | | 2022 | -1.62%| -3.2% | 3% | What are the Sharpe and Treynor ratios for the fund? **Note:** Do not round intermediate calculations. Round your answers to 4 decimal places. - **Sharpe Ratio:** - **Treynor Ratio:** The chart provides annual return data for a specific mutual fund, the market index, and risk-free rates over a five-year period. The objective is to calculate the Sharpe and Treynor ratios, which are metrics used to measure the performance of investments while adjusting for risk.
Transcribed Image Text:**Problem 13-19 Performance Metrics (LO1, CFA5)** You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. | Year | Fund | Market | Risk-Free | |------|-------|--------|-----------| | 2018 | -15.8%| -31.5% | 3% | | 2019 | 25.1% | 20.2% | 5% | | 2020 | 11.5% | 8.0% | 2% | | 2021 | 7.6% | 8.5% | 3% | | 2022 | -1.62%| -3.2% | 3% | What are the Sharpe and Treynor ratios for the fund? **Note:** Do not round intermediate calculations. Round your answers to 4 decimal places. - **Sharpe Ratio:** - **Treynor Ratio:** The chart provides annual return data for a specific mutual fund, the market index, and risk-free rates over a five-year period. The objective is to calculate the Sharpe and Treynor ratios, which are metrics used to measure the performance of investments while adjusting for risk.
**Problem 13-19 Performance Metrics (LO1, CFA5)** You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. | Year | Fund | Market | Risk-Free | |------|-------|--------|-----------| | 2018 | -15.8 | -31.5 | 3 | | 2019 | 25.1 | 20.2 | 5 | | 2020 | 13.1 | 11.5 | 2 | | 2021 | 7.6 | 8.0 | 5 | | 2022 | -1.62 | 3.0 | 3 | What are the Sharpe and Treynor ratios for the fund? **Note:** Do not round intermediate calculations. Round your answers to 4 decimal places. - **Sharpe ratio**: [Input box] - **Treynor ratio**: [Input box]
Transcribed Image Text:**Problem 13-19 Performance Metrics (LO1, CFA5)** You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. | Year | Fund | Market | Risk-Free | |------|-------|--------|-----------| | 2018 | -15.8 | -31.5 | 3 | | 2019 | 25.1 | 20.2 | 5 | | 2020 | 13.1 | 11.5 | 2 | | 2021 | 7.6 | 8.0 | 5 | | 2022 | -1.62 | 3.0 | 3 | What are the Sharpe and Treynor ratios for the fund? **Note:** Do not round intermediate calculations. Round your answers to 4 decimal places. - **Sharpe ratio**: [Input box] - **Treynor ratio**: [Input box]
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Investment Companies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS