The expected return on the stock of BungaBonga Industries, Inc (BBI) is 9,3 per cent, volatility 39 per cent, CAPM beta 0,9, and tracking error 22,7 per cent. The expected market risk premium is 2,7 per cent, and the risk-free rate is 2 per cent. Which of the following statements is most accurate? A correct answer
yields 100% of the points for this question, a wrong answer -50% (minus
fifty per cent), and no answer zero points.

Question

The expected return on the stock of BungaBonga Industries, Inc (BBI) is 9,3 per cent, volatility 39 per cent, CAPM beta 0,9, and tracking error 22,7 per cent. The expected market risk premium is 2,7 per cent, and the risk-free rate is 2 per cent.  Which of the following statements is most accurate? A correct answer 
yields 100% of the points for this question, a wrong answer -50% (minus 
fifty per cent), and no answer zero points.

Answer

While the Treynor measure is 8,11 and the Sharpe ratio 0,19, the information ratio cannot be calculated.

Answer

The Jensen's alpha 4,87 per cent, the Sharpe ratio 8,11, and the Treynor measure 0,19.

Answer

I choose not to answer. This alternative yields zero points.

Answer

The Sharpe ratio is 0,19, the Treynor measure 8,11, and the Jensen's alpha 4,87 per cent.

Answer

The Sharpe ratio is 0,19, the Treynor measure 8,11, but the information ratio is not 0,21 per cent.

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The expected return on the stock of BungaBonga Industries, Inc (BBI) is 9,3 per ...

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