The Following Data Are Available Relating to the Performance of ScoonerStock

question 21

Multiple Choice

The following data are available relating to the performance of ScoonerStock 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 information ratio for ScoonerStock Fund.

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

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