Evaluate the below unit trusts for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 8%. The average returns, standard deviations and betas for the three funds are given below.Unit trustAverage returnStandard deviationBetaFund Alpha10%0.050.4Fund Beta12%0.151.0Fund Sigma15%0.101.2           Determine the fund with the highest Sharpe measure.Select one:a.Fund Betab.Fund Alpha and Sigma are tiedc.Fund Sigmad.Fund Alpha

U State of the Economy Good Fair Poor . You are considering two mutual funds as an investment. The possible returns for the funds are dependent on the state of the economy and are given in the accompanying table. Fund 1 (in %) 20 10 -10 Fund 2 (in %) 40 20 -40 You believe that the likelihood is 20% that the economy will be good, 50% that it will be fair, and 30% that it will be poor. a. Find the expected value and the standard deviation of returns for Fund 1. b. Find the expected value and the standard deviation of returns for Fund 2.

Asset C has expected return of 14%, standard deviation of 7%, and beta of 0.4. Asset D has expected return of 17%, standard deviation of 10%, and beta of 0.7. The market portfolio has a standard deviation of 6%. The market risk premium is 2%. The risk-free rate is 5%. Assuming that Assets C and D are perfectly negatively correlated, which of the following has the lowest Sharpe ratio? _____"Question 62Answera.A portfolio consisting of 50% Asset C and 50% Asset Db.Asset Dc.Asset C

This question relates to the Bottom up investment performance appraisal. The following table provides the top 6 holdings of a fund and its benchmark, and the return for each asset over the last 1 year.Security NameWeight in FundWeight in IndexReturnIndustryAMZN8%7%28%TechGO7.5%6.5%25%TechJMT0.6%2.5%2%TechBGA3%7%5%Cons. StaplesCA2%6%7%Cons. StaplesBTU2.5%4.5%8%Cons. StaplesCalculate the Allocation Effect for the fund. Group of answer choices3.33%14%None of the other answers are correct5.34%2.01%

You manage a risky portfolio with an expected rate of return of 18%, and standard deviation of 28%. The risk-free rate (US Treasuries) is 8%. Consider the following: a) Your client chooses to invest 70% in the risky portfolio and 30% in the risk-free rate. What is the expected return and standard deviation of her portfolio

Consider four different financial products you can invest in: 1. A 12-month certificate of deposit that earns 2% annual interest. 2. A par 1-year risk-free bond with a 2% annual coupon. 3. A par 1-year risky bond with a 3.5% annual coupon. 4. A $100 per share value stock that typically pays a 2–4% dividend annually. Question 3 Which of these has the highest expected return? State at least 2 reasons WHY you selected one or more securities OR why you did NOT select the other one/ones.