A. Using the data in the table below alculate the following performance measures. i. Sharpe ratio
ii. Treynor measure
iii. Jensen’s alpha
iv. M-squared measure
v. T-squared measure, and
vi. Appraisal ratio (information ratio)
Fund
(Average (Standard (Beta (Unsystematic
Return) Deviation) Coefficient) Risk)
A 0.240 0.220 0.800 0.017
B 0.200 0.170 0.900 0.450
C 0.290 0.380 1.200 0.074
D 0.260 0.290 1.100 0.026
E 0.180 0.400 0.900 0.121
F 0.320 0.460 1.100 0.153
G 0.250 0.190 0.700 0.120
Market 0.220 0.180 1.000 0.000
Risk-free
return 0.050 0.000
6*3marks = 18 marks
b. Out of the performance measures you calculated in part a., which one would you use under
each of the following circumstances:
i. You want to select one of the funds as your risky portfolio.
ii. You want to select one of the funds to be mixed with the rest of your portfolio,
currently composed solely of holdings in the market-index fund.
iii. You want to select one of the funds to form an actively managed stock portfolio.

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.