finance m3

(use question 1 for all 9 questions)

1. During the boom years of 2003- 2007, ace mutual fund manager Diana Souros produced the following percentage rates of return. The percentage rates of return on the market (S&P 500) are given for comparison.

2003 2004 2005 2006 2007

Ms. Sauros 39 11 3 18 4

S&P 500 32 13 7 16 7

Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the average return of Ms. Sauros's mutual fund.

Give your answer to 2 decimals; do not include % in your answer.

2. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the Variance of returns of Ms. Sauros's mutual fund.

Give your answer to 2 decimals; do not include % in your answer.

3. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the standard deviation of returns of Ms. Sauros's mutual fund.

Give your answer to 2 decimals; do not include % in your answer.

4. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the average return of the market (S&P 500).

Give your answer to 2 decimals; do not include % in your answer.

5. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the Variance of the market (S&P 500) returns.

Give your answer to 2 decimals; do not include % in your answer.

6. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the standard deviation of the market (S&P 500) returns.

Give your answer to 2 decimals; do not include % in your answer.

7. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the Covariance of returns between Ms. Sauros's mutual fund and that of the market (S&P 500).

Give your answer to 2 decimals; do not include % in your answer.

8. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the Correlation of returns between Ms. Sauros's mutual fund and that of the market (S&P 500).

Give your answer to 2 decimals; do not include % in your answer.

9. Compare Ms Sauros performance with that of the market to judge whether Ms Sauros has performed better than the market (S&P 500).

Calculate the beta of Ms. Sauros's mutual fund.

Give your answer to 2 decimals.