Purchase Solution

Mutual Fund Measurements

Not what you're looking for?

Ask Custom Question

What does it mean if a domestic mutual fund has a beta coefficient of 1.25, an alpha coefficient of 2.25 and an R-Square of 75? Explain each measurement and then interpret what these measurements mean for this mutual.

Purchase this Solution
Solution Summary

Solution interprets the given mutual fund measures.

Solution Preview

Alpha

Alpha can be defined as the excess return of the investment in reference to the return of the benchmark index. It also represents the value that a portfolio manager adds or subtracts from a portfolio's return. A positive value of alpha indicates the fund has outperformed its ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

View More Free Quizzes
Related BrainMass Solutions

  • Category of Mutual Funds

    What category of mutual fund invests in corporate bonds? 5. What category of mutual fund invests in stocks or bonds of corporations throughout the world, including the United States? 6.

  • Mutual Funds

    d the mutual fund of concern; the mutual fund of concern Answer: c the mutual fund of concern; registered representatives of a brokerage firm Load funds are promoted by brokerage firms No-load fund means that the funds are promoted, bought

  • hedge fund vs a mutual fund manager

    431608 Why is it harder to assess performance of a hedge fund vs a mutual fund manager Why is it harder to assess the performance of a hedge fund portfolio manager than that of a typical mutual fund manager?

  • Asset Classes for Coca-Cola

    383964 Dow Coca Cola and Mutual Fund Bank of America Asset Classes Asset Classes for Coca-Cola and a mutual fund Select a mutual fund and a Dow 30 organization.

  • Mutual fund

    260124 Mutual fund Check out a couple of mutual fund companies (e.g. vanguard.com, tiaa-cref.com) and analyze what types of funds and services they offer. What is the best mutual fund and which is the best mutual fund company?

  • Asset Classes for Caterpiller and a mutual fund

    255917 Asset Classes for Caterpiller and a mutual fund Asset Classes Select a mutual fund and a Dow 30 organization. Based on your selections, determine the asset classes for your selected mutual fund and Dow 30 organization.

  • Business Math : Linear Programming - Investment Problem

    An investor has $60,000 to invest in a CD and a mutual fund. The CD yields 5%, and the mutual fund yields 9%.

  • operating expenses of types of mutual funds

    The fact that open-end fixed income mutual fund is a fixed income mutual fund, meaning that it provides fixed periodic payments and the return of principal at maturity, does not mean that open-end fixed income mutual fund are not actively managed.

  • Investment & Portfolio Management: Using Mutual Fund Investment Strategies

    530865 Using Mutual Fund Investment Strategies One way to diversify your portfolio is to invest in the mutual funds.

View More Related Solutions