The Following Data Are Available Relating to the Performance of Scooner

question 46

Multiple Choice

The following data are available relating to the performance of Scooner Stock 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%.
What is the Sharpe measure of performance evaluation for Scooner Stock Fund?

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

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