Jimmy is one year old and he developed high fever and seizur…

Jimmy is one year old and he developed high fever and seizures.  His doctor suspects meningitis.  He decided to do a spinal tap which is a procedure to draw a sample of cerebrospinal fluid from the area of the lumbar spine.  In which of the following areas will the needle be inserted?

Last year, Big Brain Fund generated returns by making the fo…

Last year, Big Brain Fund generated returns by making the following investments in 2 asset classes:                                                                        Weight              Return                            Bond Portfolio                  30%                    5%                            Stock Portfolio                 70%                   17% The benchmark portfolio used to judge Big Brain is comprised of the following indices with weights and returns as outlined below:                                                                        Weight               Return                  Bonds (Lehman Index)                20%                    3%                 Stocks (S&P 500 Index)               80%                   14% What was the contribution of security selection to Big Brain’s total excess return?

A stock trader you employ currently follows 24 stocks and up…

A stock trader you employ currently follows 24 stocks and updates her alpha forecasts every month. She then initiates a certain number of trades each month (less than 24) based on this analysis. You have analyzed her past performance for several years, and find she has an IC = 0.07 and an IR = 0.63. How many trades do you estimate she makes each year?

The following data are available on the performance of Semin…

The following data are available on the performance of Seminole Fund and the market portfolio:                                                                                 Seminole Fund            Market Portfolio Average Return                                                        16%                                 10% Standard Deviation of Returns                               28%                                 24% Beta                                                                              1.20                                 1.00 Residual Standard Deviation                                      6%                                   0% The risk-free return during the sample period was 4%. Assuming that the CAPM is correct, what is the information ratio measure of performance for the Seminole Fund?  

Recall the Treynor-Black model. You have determined that the…

Recall the Treynor-Black model. You have determined that the current Sharpe Ratio for the market portfolio is 0.40. You have formed an active portfolio that has a non-systematic standard deviation of 6.2%. Assume your goal is to create an optimally constructed portfolio using the Treynor-Black approach. What would the alpha of your active portfolio need to be if the target Sharpe ratio for your constructed portfolio is 0.60?