Calculate the M2 measure of performance for Fund A.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The average return, standard deviation, and beta for Fund A is given below along with data for the S&P 500 Index.

Fund Average Return Standard Deviation Beta
A 25.7% 29% 1.3
S&P 500 17.9% 20% 1
Risk-free 3.8%  

 

Calculate the M2 measure of performance for Fund A.

Use the correct sign if the answer is negative!  Example: -1.23 

 
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