The Following Data Are Available Relating to the Performance of Monarch

question 35

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 Treynor's measure of performance for Monarch Stock Fund.

• A) 10.40%
• B) 8.80%
• C) 44.00%
• D) 50.00%

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Definitions:

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