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

Appreciate the importance of self-regulation in achieving long-term goals and its predictors.

Understand the concept of ironic processing and strategies to minimize its effects.

Identify the components and functions of self-regulation systems.

Recognize the role of action identification and construal level theories in goal setting and task approach.

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Definitions:

Historical Cost Principle

An accounting principle that requires financial statements to be based on the original cost of an asset, rather than its current market value.

Consistency Principle

An accounting principle that requires entities to apply the same accounting methods and policies from period to period unless a change is justified and disclosed.

Accounting Methods

The specific rules and procedures used by a business to prepare its financial statements, including how it recognizes revenue and expenses.

Revenue Recognition

Revenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized and dictates how to account for it.