You Want to Evaluate Three Mutual Funds Using the Treynor

question 19

Multiple Choice

You want to evaluate three mutual funds using the Treynor measure for performance evaluation.The risk-free return during the sample period is 6%.The average returns,standard deviations,and betas for the three funds are given below,in addition to information regarding the S&P 500 index. $$\begin{array}{l}\begin{array} { l l l l } \text { Average Return } & \text { Standard Deviation }&\text { Beta } \\\text { Fund A } &13 \% & 10 \% & 0.5\\\text { Fund B } &19\%&20\%&1.0\\\text { Fund C } &25\%&30\%&1.5\\\text { S\&P 500 } &18\% &16\% &1.0\end{array}\end{array}$$
The fund with the highest Treynor measure is _________.

• A) Fund A
• B) Fund B
• C) Fund C
• D) Funds A and B are tied for highest
• E) Funds A and C are tied for highest

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Definitions:

Peripherally Generated Pain

Pain originating from the peripheral nervous system, often due to tissue injury or inflammation outside the central nervous system.

FACES Scale

A visual tool used to help patients, especially children, describe and quantify their level of pain through facial expressions.

Assessing Pain

The systematic evaluation of an individual's pain, considering intensity, location, duration, and factors that alleviate or exacerbate it, to guide management and treatment.

Pain Scale

An assessment tool used to quantify the intensity of pain experienced by a patient, typically ranging from 0 (no pain) to 10 (worst possible pain).