Unformatted text preview: expected return of 20% and volatility of 40% whereas stock 2 has an expected return of 10% and a volatility of 20%. DO NOT calculate anything for this exercise! 3. Hedge Fund XYZ claims to deliver an expected return of 20% and volatility of less than 20%. Is this superior to the market (assuming the claim is correct)? Assume that the market delivers an expected return of 10% and has a standard deviation of 10%. The risk-free rate is 5%. Name: ________________ SID # : ________________ Section Number _________ Answer to #1: ____________________ Answer to #3: ____________________...
View Full Document
This note was uploaded on 10/02/2009 for the course UGBA 08547 taught by Professor Odean during the Spring '09 term at Berkeley.
- Spring '09