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The following data are available relating to the performance of hayek stock fund and the market portfolio:

hayek market portfolio
average return 20% 11%
standard deviations of returns 44% 19%
beta 1.8 1.0
residual standard deviation 2.0% 0.0%

the risk-free return during the sample period was 3%. calculate the jensen measure of performance evaluation for hayek stock fund.
a. 2.60%
b. 4.00%
c. 8.67%
d. 31.43%

User Adam Flynn
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1 Answer

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Final answer:

The question relates to finance or investment analysis, and involves understanding a stock fund's performance and applying statistical methods for hypothesis testing concerning stock price growth.

Step-by-step explanation:

The data available concerning the Hayek stock fund and the market portfolio seem to indicate figures that could be related to stock performance or investment return metrics. It's most likely that this scenario involves topics from finance or investment analysis, areas of study within the broader field of business.

Separately, the question about the hypothesis test for a stock's weekly growth rate concerns the application of statistical methods to evaluate investment performance. It's essential to state the null and alternative hypotheses, calculate the p-value, and then draw a conclusion based on the level of significance. To make a detailed conclusion, understanding Type I and Type II errors are critical, which represent the risks of incorrect decisions regarding the hypotheses.

Although the mention of Friedrich Hayek and free market theories are provided, they do not seemingly relate directly to the mathematical or financial analysis required for the stock fund or hypothesis testing question. However, Hayek's economic philosophies may underpin the principles of modern financial markets.

User Billboard
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