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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"):
 Unit price at start of year $8.09 Unit price at end of year $9.14 Standard deviation of the fund (σp)1.8 Risk-free rate (Rf)2.75% p.a. \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.


Definitions:

Performance Standards

Established benchmarks used to measure the quality, efficiency, or effectiveness of an individual's or organization's work.

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, nationality, disability, or sexual orientation rather than their qualifications or performance.

Job-Relevant

Pertains to aspects or factors that are directly applicable or significant to one's occupation or position.

Industrial Relations

The study and management of employment relationships, including interactions among employers, employees, and the institutions and laws that govern work environments.

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