The Witney Growth Fund, a No- Fee Managed Fund, Had

question 5

Essay

The Witney Growth Fund, a no- fee managed fund, had a net tangible asset value per unit of $54.28 one year ago. Its current net tangible asset value is $56.93. During the year it paid out dividends and capital gains of
$2.08 per unit. It has a beta value of 1.75. Over the same period the market return was 6.4% and the risk- free rate of return was 3.5%.
(a) Calculate Treynor's measure for the Witney Growth Fund. (Show all work.)
(b) Based on Treynor's measure, how did the fund perform in relation to the overall market?

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Definitions:

Electrical Charge

A fundamental property of particles that causes them to experience a force when placed in an electromagnetic field.

Sarcolemma

The cell membrane of a muscle fiber (cell), crucial for muscle contraction and signal transmission.

Muscle Fiber

A single muscle cell, known for its elongated shape, that makes up skeletal muscles and is responsible for contracting to produce movement.

Plasma Membrane

A selectively permeable lipid bilayer that encloses the cytoplasm of a cell, protecting it from the external environment.