Solved: What is the alpha of the two funds, Finance Basics

+44 141 628 6080
[email protected]

What is the alpha of the two funds

Problem: You can invest in two funds A and B with the following characteristics:

Fund    E(R)    Beta
A      12%    0.90
B        18%    1.50

The riskfree return is 5%. The market risk premium is 8%. The standard deviation of the market return is 20%. The two funds have no non-systematic risk. (Show your work)

Q1) What is the alpha of the two funds?

Q2) What is the standard deviation of the two funds?

Q3) What is the correlation of the two funds?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the alpha of the two funds

Reference No:- TGS01800655

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Outline a social issue that is important to you

Outline a social issue that is important to you. Describe why it is important to you, why it is important from a societal perspective and how you think

How ensure that the youth understand what study involves

What is another way to say ". It is important to ensure that the youth understand what the study involves, what their participation entails

Problem on journal articles and non-journal materials

Amanda said? Excellent post, Chrystal. You provided great insight into the helpful resource ERIC digital library is. I appreciate how it states the information

Problem concerning consensual sexual relationship

Question: Jena and Ben are employees of Big City Electronics. They began to have a consensual sexual relationship.

Review a social, behavioral, or cultural factor

Bearing in mind that there may be several, choose a social, behavioral, or cultural factor associated with your selected domestic violence

Examine historical literature to the most current period

Examine historical literature to the most current period to see the growth of romanticism and EXISTENTIALISM. any major developments

Discuss three ethical guidelines that are important

Identify and discuss three ethical guidelines that are important to consider when designing an 8-week group for adolescents who are referred

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the alpha of the two funds

Reference No:- TGS01800655

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the equity beta

Q : Discuss how training needs assessment

Q : What behaviors you look for when building your teams

Q : Describe leader power and aspects of effective followership

Q : What is the alpha of the two funds

Q : Benefit of workers in all industries

Q : Capm to calculate the cost of capital for a risky project

Q : Write a research paper on local fire sprinkler ordinance

Q : How leadership is effective or ineffective in communicating