Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock.
Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. Input Data Vogt Industries Isher Corporation Hedrock, Incorporated Alpha 0.012 0.006 0.016 Beta 0.277 1.015 1.630 Standard Deviation 0.156 0.168 0.181 Residual Standard Deviation 0.117 0.048 0.113 Required: Using the information in the table above, please calculate the information ratio for each stock.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 4LO
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Suppose you manage an equity fund with the following securities. Use the following data to calculate the information ratio of each stock. | ||||||
Input Data | Vogt Industries | Isher Corporation | Hedrock, Incorporated | |||
Alpha | 0.012 | 0.006 | 0.016 | |||
Beta | 0.277 | 1.015 | 1.630 | |||
Standard Deviation | 0.156 | 0.168 | 0.181 | |||
Residual Standard Deviation | 0.117 | 0.048 | 0.113 | |||
Required: | ||||||
Using the information in the table above, please calculate the information ratio for each stock. | ||||||
(Use cells A5 to D8 from the given information to complete this question.) | ||||||
Vogt Industries | Isher Corporation | Hedrock, Incorporated | ||||
Information Ratio |
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