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A portfolio has an expected return of 11...

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题目

A portfolio has an expected return of 11.0% with volatility of 24.0%. The benchmark has an expected return of 5.0% with volatility of 15%. The expected returns correlation is 0.80. What is the expected (ex ante) information ratio (IR)?

选项

A.0.40

B.0.55

C.0.69

D.0.80

答案

A

解析

Tracking error = SQRT(24%^2 15%^2 - 2*24%*15%*0.80) = 15.0%Information ration = E[R(P) - R(B)]/TE = (11%-5%)/15% = 0.40Tracking error = SQRT(24%^2 15%^2 - 2*24%*15%*0.80) = 15.0% Information ration = E[R(P) - R(B)]/TE = (11%-5%)/15% = 0.40