The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio:

The risk-free return during the sample period was 6%.
Calculate the information ratio for Long Horn Stock Fund.
A) 1.33
B) 4.00
C) 8.67
D) 31.43
E) 37.14

Question

The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio:

The risk-free return during the sample period was 6%.
Calculate the information ratio for Long Horn Stock Fund.
A) 1.33 
B) 4.00 
C) 8.67 
D) 31.43 
E) 37.14

Quizplus · Accepted Answer

α_P= 19% - [6% + 1.5(12% - 6%)] = 4.00%, 4.00%/3.00% = 1.33.

The Following Data Are Available Relating to the Performance of Long