The Following Data Are Available Relating to the Performance of Monarch

question 7

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 Sharpe's measure of performance for Monarch Stock Fund.

• A) 1%
• B) 46%
• C) 44%
• D) 50%
• E) None of the options are correct.

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Definitions:

Statutory Benefits

Mandatory benefits that organizations are required to provide to employees, as regulated by law, such as social security contributions and workers' compensation.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Unemployment Compensation

Financial assistance provided to individuals who have lost their jobs, through no fault of their own, while they search for new employment.

Wage and Salary Information

Data related to employees' pay rates, including their hourly wages or annual salaries.