The Following Data Are Available Relating to the Performance of Sooner

question 33

Multiple Choice

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: $\begin{array}{lcc} & \text { Sooner } & \text { Market } \\&&\text { Portfolio }\\\text { Average return } & 20 \% & 11\% \\\text { Standard deviations of returns } & 44\% & 19\% \\\text { Beta } & 1.8 & 1.0 \\\text { Residual standard deviation } & 2.0 \% & 0.0 \%\end{array}$
The risk-free return during the sample period was 3%.
What is the Treynor measure of performance evaluation for Sooner Stock Fund?

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 9.44%
• E) 37.14%

---

Definitions:

Expectancy Model

A psychological theory suggesting that people are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.

Perceived Relationship

The subjective interpretation or understanding an individual has of their relationship with others, which may not align with reality.

Effort

The use of physical or mental energy to achieve a task, goal, or outcome, often measured by the level of hard work or intensity applied.

Pay

Compensation received by an employee for their work, including wages, salaries, and bonuses.