alleryStart learning →For 94 US balanced funds, Ibbotson and Kaplan found shared variance of about what?
A93.6%
B91.5%
C81.4%
D28.6%
Answer & Solution
Correct answer: C. 81.4%
Monthly index and fund returns correlated at 90.2%, giving shared variance of 81.4%.
Keep practising Asset Allocation
Browse all Asset Allocation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In UK gilt market guides, modified duration is often called what?What does key rate duration capture that ordinary duration does not?Fisher-Weil duration discounts each cash flow at which rate?Which feature produces negative convexity in a bond?Effective duration is used for securities such as callable bonds because their what changeDuration alone becomes less accurate as the yield change does what?What improves a duration estimate when yields change by a large amount?What does DV01 express?