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 total excess return of Big Brain Fund’s managed portfolio versus the benchmark?

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. Using the information provided , how many stocks would she need to follow to increase her IR from 0.63 to 0.75? Assume that her IC will remain at 0.07.