You Want to Evaluate Three Mutual Funds Using the Information

question 60

Multiple Choice

You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. $\begin{array}{cc} &\text {Average ReturnResidual } &\text { Standard Deviation }&\text { Beta }\\ \text { Fund A } &20\%&4.00\%&0.8\\ \text {Fund B } &21\%&1.025\%&1.0\\ \text { Fund C} &23\%&1.20\%&1.2\\\end{array}$
The fund with the highest information ratio measure is

• A) Fund A.
• B) Fund B.
• C) Fund C.
• D) Funds A and B (tied for highest).
• E) Funds A and C (tied for highest).

Describe the nature and importance of hydrogen bonds in molecule interactions.

Recognize and classify types of chemical reactions and their roles in biological systems.

Define solubility and its importance in biological reactions.

Explain ionic dissociation in water and its biological implications.

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Definitions:

Implied Warranty

A legal term referring to a warranty that is not expressly stated but is assumed by law to exist in a sale.

Release

A legal agreement where one party forfeits the right to pursue a claim or lawsuit against another party.

Damages

A monetary compensation awarded by a court to a person who has suffered a loss or injury.

Incidental Beneficiary

A person or entity that indirectly gains a benefit from a contract to which they are not a party, without the contract specifically intending such benefit.