The Following Data Are Available Relating to the Performance of Seminole

question 65

Multiple Choice

The following data are available relating to the performance of Seminole Fund and the market portfolio: $$\begin{array} { | l | l | l | } \hline & \text { Seminole } & \text { Market Portfolio } \\\hline \text { Average Return } & 18 \% & 14 \% \\\hline \text { Standard Deviation of Returns } & 30 \% & 22 ^ { \circ } \% \\\hline \text { Beta } & 1.4 & 1.0 \\\hline \text { Residual standard deviation } & 4.0 \% & 0.0 \% \\\hline\end{array}$$ The risk-free return during the sample period was 6%.
-If you wanted to evaluate the Seminole Fund using the M² measure,what percent of the adjusted portfolio would need to be invested in T-Bills?

• A)-36% (borrow)
• B)50%
• C)8%
• D)36%
• E)27%

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Definitions:

Seed Density

The number of seeds per unit area or volume, which can affect plant growth and crop yield.

Lawn Quality

A measure of the health, appearance, and overall condition of a grassy area or garden.

Prediction Interval

A prediction interval is a range of values that is used to estimate the interval within which a future observation will fall, with a certain degree of confidence, based on current data.

Seed Density

Refers to the quantity of seeds sown per unit area, impacting plant growth and crop yield.