Refer to the Performance Data for Three Mutual Funds and the Market

question 96

Multiple Choice

Refer to the performance data for three mutual funds and the market portfolio in the following table. Which is the best investment based on its excess return per unit of systematic risk? $$\begin{array} { | c | c | c | c | c | c | } \hline & \text { AGF } & \text { AIM } & \text { Alta } & \text { Market } & \text { Risk-free } \\\hline \text { 5 year return } & 0.1348 & 0.0784 & 0.0574 & 0.1361 & 0.02 \\\hline \text { Beta } & 1.35 & 1.02 & 0.78 & 1 & 0 \\\hline \text { Treynor Index } & ? & 0.0573 & 0.0479 & 0.1161 & \\\hline\end{array}$$

• A)AGF
• B)AIM
• C)Alta
• D)Market
• E)Risk-Free

---

Definitions:

Fault

A legal term often used in negligence cases, referring to responsibility or blame for an accident or misdeed.

Injury

A physical or emotional harm caused by an accident, disease, or deliberate act.

Strictly Liable

Being legally responsible for damages or harm caused, regardless of negligence or intent.

Manufacturing Defects

Flaws or errors in a product resulting from the manufacturing process which potentially harm consumers or differ from intended design.