The Following Data Are Available Relating to the Performance of Monarch

question 31

Multiple Choice

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $\begin{array}{lcc} & \text { Monarch } & \text { Market } \\ &&\text { Portfolio }\\\text { Average return } & 16 \% & 12\% \\\text { Standard deviations of returns } & 26\% & 22\% \\\text { Beta } & 1.15 & 1.00 \\\text { Residual standard deviation } &1 \% & 0 \%\end{array}$
The risk-free return during the sample period was 4%.
What is the information ratio measure of performance evaluation for Monarch Stock Fund?

• A) 1.00%
• B) 280.00%
• C) 44.00%
• D) 50.00%
• E) None of the options are correct.

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Definitions:

Methanesulfonic Acid

A strong organic sulfonic acid with the molecular formula CH3SO3H, used in various chemical synthesis processes.

Propanoic Acid

A saturated C3 carboxylic acid with a pungent odor, occurring naturally in sweat and acts as a preservative in foods.

Acidic

Referring to substances that have a pH less than 7, can donate a proton (H+ ion) to another substance, and turn litmus paper red.

pKa

A measure of the acidic strength of a substance, indicating the pH at which a molecule donates its proton to the solution.