1. The YTM on a bond is 6% and is expected to remain at 6%.
You calculated that the bond's one period current yield is 9%. Based on this information, the one period expected capital gain/loss is :
2. The Layton Growth Fund has an alpha of 1.6 percent. You have determined that Layton’s information ratio is 0.25. What must Layton’s tracking error be relative to its benchmark? (Enter your answer as a percent rounded to 2 decimal places.)
Tracking error ________%