A Fund Has an Alpha of 0

question 50

Multiple Choice

A fund has an alpha of 0.73 percent and a tracking error of 5.4 percent. What is the fund's information ratio?

• A) 0.112
• B) 0.135
• C) 0.166
• D) 0.208
• E) 0.229

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Definitions:

Macro Level

A term used in sociology to describe the analysis of large-scale social processes, institutions, and structures.

Disenfranchisement

The removal of the rights of citizenship through economic, political, or legal means.

Voting Conviction

The firm belief or firmness of opinions in the context of voting, driven by personal principles and values.

Incumbents

Currently holding an office or position, often used in the context of political positions to refer to existing officeholders.