You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: Rp 12% Portfolio Z Market Risk-free 11 8 10 4 Information ratio op 29% 24 14 19 0 8p 1.25 1.10 0.75 1.00 0 Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X? Note: 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
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You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:
8p
1.25
Portfolio
X
Y
Z
Market
Risk-free
Rp
12%
Information ratio
11
8
10
4
S24499
op
29%
14
19
1.10
0.75
1.00
0
4
Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X?
Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
Transcribed Image Text:You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: 8p 1.25 Portfolio X Y Z Market Risk-free Rp 12% Information ratio 11 8 10 4 S24499 op 29% 14 19 1.10 0.75 1.00 0 4 Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X? Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
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