The Following Data Are Available Relating to the Performance of Long

question 40

Multiple Choice

The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%.
Calculate the Jensen measure of performance evaluation for Long Horn Stock Fund.

• A)1.33%
• B)4.00%
• C)8.67%
• D)31.43%

---

Definitions:

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and manufacturing overhead.

Total Job Cost

The sum of all costs directly attributed to a specific job, including materials, labor, and overhead.

Job Cost

The total cost of labor, materials, and overhead assigned to a specific job or project.

Manufacturing Overhead

All indirect costs associated with the production process, including maintenance, utilities, and salaries of maintenance workers, not directly tied to a specific product.