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

The risk-free return during the sample period was 3%.
Calculate the information ratio for Sooner Stock Fund.
A) 1.53
B) 1.30
C) 8.67
D) 31.43
E) 37.14

Question

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

The risk-free return during the sample period was 3%.
Calculate the information ratio for Sooner Stock Fund.
A) 1.53 
B) 1.30 
C) 8.67 
D) 31.43 
E) 37.14

Quizplus · Accepted Answer

α_P = 20% - [3% + 1.8(11% - 3%)] = 2.6%, 2.6%/2.00% = 1.3.

The Following Data Are Available Relating to the Performance of Sooner