You Have Been Able to Research the Following Information on the Alpha

question 5

Essay

You have been able to research the following information on the Alpha Beta Securities Fund ("Alpha Beta"):
$\begin{array}{lc}\text { Unit price at start of year } & \$ 8.09 \\\text { Unit price at end of year } & \$ 9.14 \\\text { Standard deviation of the fund }\left(\sigma_{p}\right) & 1.8 \\\text { Risk-free rate }\left(R_{f}\right) & 2.75 \% \text { p.a. }\end{array}$
(a) Calculate the Sharpe ratio for Alpha Beta.
(b) Interpret your calculation of the Sharpe ratio for Alpha Beta.

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Definitions:

Homosexual Behavior

Engaging in romantic or sexual activities with a person of the same sex.

Fraternal Birth-Order Effect

A psychological theory suggesting that a male is more likely to be homosexual if he has a greater number of older brothers.

Maternal Immune Response

The immune system's reaction of a pregnant woman to foreign antigens, which can influence pregnancy outcomes.

Skin-To-Skin STIs

Sexually transmitted infections that can be transmitted through direct skin-to-skin contact, not requiring the exchange of bodily fluids.