A Fund Has an Alpha of 0

question 51

Multiple Choice

A fund has an alpha of 0.73 percent and a tracking error of 4.9 percent.What is the fund's information ratio?

• A) 0.112
• B) 0.135
• C) 0.149
• D) 0.208
• E) 0.229

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Definitions:

Subjectivist Fallacies

Errors in reasoning that occur when subjective opinions or personal preferences are presented as objective facts.

Fallacy

A fallacy is a misleading or unsound argument that appears logical at first glance but does not hold up under scrutiny, often due to flawed reasoning or misleading premises.

Evidence

Information, data, or facts presented in support of an assertion, claim, or argument.

Multiple Fallacies

The presence of several logical errors or misleading arguments within a single reasoning process or argument.