FIN - You have been given the following return information for two mutual funds (Papa and Mama)
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| You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. | |||||||
| Year | Papa Fund | Mama Fund | Market | Risk-Free | |||
| 2008 | -12.60% | -22.6 | -24.50% | 1% | |||
| 2009 | 25.40% | 18.50% | 19.50% | 3% | |||
| 2010 | 8.50% | 9.20% | 9.40% | 2% | |||
| 2011 | 15.50% | 8.50% | 7.60% | 4% | |||
| 2012 | 2.60% | -1.20% | -2.20% | 2% | |||
| Calculate the Sharpe ratio, Treynor ratio, Jensen’s alpha, information ratio, and R-squared for both funds and determine which is the best choice for your portfolio. |
12 years ago
FIN - Two mutual funds (Papa and Mama) Solution
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fin__-_two_mutual_funds_papa_and_mama_solution.xlsx
