The Following Data Are Available Relating to the Performance of Monarch

question 30

Multiple Choice

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | } \hline & \text { Monarch } & \text { Market Portfolio } \\\hline \text { Average Return } & 16 \% & 12 \% \\\hline \text { Standard Deviation of Returns } & 26 \% & 22 \% \\\hline \text { Beta } & 1.15 & 1.00 \\\hline \text { Residual Standard Deviation } & 1 \% & 0 \% \\\hline\end{array}$$ 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%
• E)none of the above

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