The Following Data Are Available Relating to the Performance of Scooner

question 22

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%.
Calculate the Jensen 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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Definitions:

Unamortized Trademark

The portion of the trademark's cost that has not yet been expensed through amortization in the financial statements, representing the remaining value of the trademark.

Cash Dividends

Cash dividends refer to payments made by a corporation to its shareholders, usually out of its profits.

Goodwill

Represents the intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.

Equity Method

An accounting technique used to record investments in other companies, recognizing income and changes in investment value in proportion to the ownership percentage.