A Fund Has an Alpha of

question 26

Multiple Choice

A fund has an alpha of .89% and a tracking error of 3.8%. What is the fund's information ratio?

• A).112
• B).135
• C).149
• D).212
• E).234

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Definitions:

Exam Grades

The numerical or letter indicators used to quantify a student's performance in an academic examination.

Random Assignment

Researchers’ assignment of participants to groups by chance, to reduce the likelihood that an experiment’s results will be due to preexisting differences between groups.

Experimental Research

A methodological approach in scientific studies where variables are manipulated to assess their effects on other variables, typically within a controlled environment.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables are linearly related, varying from -1 (perfect negative correlation) to +1 (perfect positive correlation).