The Layton Growth Fund has an alpha of 1.8 percent. You have determined that Lay

Question

The Layton Growth Fund has an alpha of 1.8 percent. You have determined that Layton’s information ratio is .25. What must Layton’s tracking error be relative to its benchmark? (Enter your answer as a percent rounded to 1 decimal place. Omit the "%" sign in your response.)

The Layton Growth Fund has an alpha of 1.8 percent. You have determined that Layton’s information ratio is .25. What must Layton’s tracking error be relative to its benchmark? (Enter your answer as a percent rounded to 1 decimal place. Omit the "%" sign in your response.)

Explanation / Answer

information ratio = alpha/tracking error ie0.25= 1.8%/TE So TE = 0.45%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.