The Following Data Are Available Relating to the Performance of Scooner

question 22

Multiple Choice

The following data are available relating to the performance of Scooner Stock Fund and the market portfolio: $\begin{array}{lcc} & \text { Scooner } & \text { Market } \\&&\text { Portfolio }\\\text { Average return } & 19 \% & 12\% \\\text { Standard deviations of returns } & 35\% & 15\% \\\text { Beta } & 1.5 & 1.0 \\\text { Residual standard deviation } & 3.0 \% & 0.0 \%\end{array}$

The risk-free return during the sample period was 6%.
Calculate the Jensen measure of performance evaluation for Scooner Stock Fund.

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 31.43%
• E) 37.14%

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Definitions:

Collective Bargaining

Collective bargaining is a process where employers and employees negotiate terms and conditions of employment, usually through labor unions.

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not conditional upon union membership or fees.

Taft-Hartley Act

A 1947 federal law that restricts the activities and power of labor unions in the United States.

National Labor Relations Act

A foundational American law enacted in 1935 that protects workers' rights to organize and bargain collectively with their employers.