The Information in the Following Table Is to Be Used

question 13

Multiple Choice

The information in the following table is to be used to answer questions
$\begin{array}{|l|c|c|c|c|}\hline \text { Fund } & \text { Standard Deviation } & \text { Beta } & \begin{array}{c}\text { Jensen's } \\\text { Alpha }\end{array} & \mathbf{R}^{\mathbf{2}} \\\hline \text { Fund 1 } & 1.97 & 1.0 & 1.3 & 0.95 \\\hline \text { Fund 2 } & 2.97 & 0.8 & 0.6^{*} & 0.80 \\\hline \text { Fund 3 } & 3.82 & 1.2 & -3.5^{*} & 0.90 \\\hline \text { Fund 4 } & 3.50 & 1.4 & 4.2 & 0.65 \\\hline\end{array}$
-Based on Jensen's performance measure, which fund significantly outperformed?

• A) Fund 1
• B) Fund 2
• C) Fund 3
• D) Fund 4

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Definitions:

Similar-To-Me Effect

A rater gives more favourable evaluations to people who are similar to the rater in terms of background or attitudes.

Gender Stereotypes

Preconceived notions about the roles and behaviors of men and women based on traditional gender roles and societal expectations.

Decision Makers

Individuals or entities responsible for making choices that determine the course of actions.

Accountability

The obligation to explain, justify, and take responsibility for one’s actions in a professional or personal context, often within the structure of an organization or public service.