The Average Returns, Standard Deviations and Betas for Three Funds

question 25

Multiple Choice

The average returns, standard deviations and betas for three funds are given below along with data for the S&P 500 index. The risk-free return during the sample period is 6%. You wish to evaluate the three mutual funds using the Jensen measure for performance evaluation. The fund with the highest Jensen measure of performance is ________.

• A)Fund A
• B)Fund B
• C)Fund C
• D)S&P500

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Definitions:

Formal Education

Structured, curriculum-based education typically obtained from traditional educational institutions such as schools, colleges, and universities.

Summary Rating Chart

A tool used in performance evaluations to summarize and visualize employee performance ratings across different categories or competencies.

Factor Weightings

The assignment of importance to different criteria in a decision-making process or evaluation framework.

Statistical Analysis

The process of collecting, analyzing, interpreting, and presenting data to discover underlying patterns and trends.