The Following Data Are Available Relating to the Performance of Monarch

question 35

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%.
Calculate Treynor's measure of performance for Monarch Stock Fund.

• A) 10.40%
• B) 8.80%
• C) 44.00%
• D) 50.00%

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Definitions:

SUTA Tax Rate

The state unemployment tax rate that employers pay to fund unemployment benefits, which can vary based on the employer's industry and experience with layoffs.