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You Have Been Able to Research the Following Information on the Alpha

Question 28

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You have been able to research the following information on the Alpha Beta Securities Fund ("Alpha Beta"):
 Unit price at start of year $8.09 Unit price at end of year $9.14 Standard deviation of the fund (σp)1.8 Risk-free rate (Rf)2.75% p.a. \begin{array}{lc}\text { Unit price at start of year } & \$ 8.09 \\\text { Unit price at end of year } & \$ 9.14 \\\text { Standard deviation of the fund }\left(\sigma_{p}\right) & 1.8 \\\text { Risk-free rate }\left(R_{f}\right) & 2.75 \% \text { p.a. }\end{array}
(a) Calculate the Sharpe ratio for Alpha Beta.
(b) Interpret your calculation of the Sharpe ratio for Alpha Beta.

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(a)
(b) For Alpha Beta, 5.69% of the 13%...

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