Question
$20.00 Finance Homework
FINANCE : Q4 TO Q10 ONLY : SURE A+ GRADE.
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- Posted on Mar. 03, 2012 at 08:04:20AM
Posted by :
pavan101
Rating (194):A-
Questions Asked: 10
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Rating (194):A-
Questions Asked: 10
Tutorials Posted: 1856,
Blog Posts: 2,
Earned: $5,872.03
A:
Preview: ... + b*(Rm-Rf)
So, For Phoenix Fund :
0.013*12 = 0.006*12+1.2*(Rm-Rf)
=> (Rm-Rf) = 0.007*12/1.2 = 0.07
Sharpe Ratio = (Rm-Rf)/sd = 0.07/0.36 = 0.194 (ANSWER).
For index fund :
0.08 = 0.006*12 + 1*(Rm-Rf) ,
=> Rm-Rf = (0.08-0.072) = 0.008 ,
Sharpe Ratio = 0.008/0.25 = 0.032 (ANSWER).
Phoenix Fund showed higher Sarpe Ratio, but it can not be said that it is s ...
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