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1. Compare the performance of the two equity funds (Fund A and Fund B), based on...

1. Compare the performance of the two equity funds (Fund A and Fund B), based on the information given below.

Fund

Average Return (%)

Standard deviation of returns (%)

Beta

A

B

19.5

15.7

15.5

9.5

1.5

1.2

Additional information:

The risk-free rate is 5% and the return on the market index is 12%. The tracking error is 8.5% for Fund A, and 4% for Fund B.    Evaluate and discuss.

2. Jason and Mary purchase a house for $550,000. They obtain a home loan for 80% of the purchase price. They wish to pay off the mortgage monthly over 25 years. Assume a fixed interest rate of 4.5% p.a.   What will be the amount of each monthly repayment?


show all working please

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jeff jeffy answered 2 years ago
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