You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: Rp 12% Portfolio Z Market Risk-free 11 8 10 4 Information ratio op 29% 24 14 19 0 8p 1.25 1.10 0.75 1.00 0 Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X? Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: Rp 12% Portfolio Z Market Risk-free 11 8 10 4 Information ratio op 29% 24 14 19 0 8p 1.25 1.10 0.75 1.00 0 Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X? Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:
8p
1.25
Portfolio
X
Y
Z
Market
Risk-free
Rp
12%
Information ratio
11
8
10
4
S24499
op
29%
14
19
1.10
0.75
1.00
0
4
Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X?
Note: Do not round intermediate calculations. Round your answer to 4 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44f13936-1317-4d1e-91a9-88a64a4d0d7a%2F5e82070f-7010-400a-8561-62e18dcc0e7e%2F3rop4y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:
8p
1.25
Portfolio
X
Y
Z
Market
Risk-free
Rp
12%
Information ratio
11
8
10
4
S24499
op
29%
14
19
1.10
0.75
1.00
0
4
Assume that the tracking error of Portfolio X is 9.2 percent. What is the information ratio for Portfolio X?
Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
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