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The Following Data Are Available Relating to the Performance of Tiger

question 48

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The following data are available relating to the performance of Tiger Fund and the market portfolio: Tiger  Market  Portfolio  Average return 18%15% Standard deviations of returns 25%20% Beta 1.251.00 Residual standard deviation 2%0%\begin{array}{lcc} & \text {Tiger } & \text { Market } \\ &&\text { Portfolio }\\\text { Average return } & 18 \% & 15\% \\\text { Standard deviations of returns } & 25\% & 20\% \\\text { Beta } & 1.25 & 1.00 \\\text { Residual standard deviation } &2 \% & 0 \%\end{array}
The risk-free return during the sample period was 7%.
Calculate Sharpe's measure of performance for Tiger Fund.


Definitions:

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain and facilitating communication between them.

Cerebellum

A major structure of the hindbrain that is involved in motor control and coordination.

Right Hemisphere

The right half of the brain, which is responsible for spatial abilities, face recognition, visual imagery, and processing music and art.

Motor Cortex

The cerebral cortex's region focused on the planning, supervision, and implementation of voluntary movements.

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