The Following Data Are Available Relating to the Performance of Wildcat

question 27

Multiple Choice

The following data are available relating to the performance of Wildcat Fund and the market portfolio: $$\begin{array} { | l | l | l | } \hline & \text { Wildeat } & \text { Market Portfolio } \\\hline \text { Average Return } & 18 \% & 15 \% \\\hline \text { Standard Deviation of Returns } & 25 \% & 20 \% \\\hline \text { Beta } & 1.25 & 1.00 \\\hline \text { Residual Standard Deviation } & 2 \% & 0 \% \\\hline\end{array}$$ The risk-free return during the sample period was 7%.
-Calculate Jensen's measure of performance for Wildcat Fund.

• A)1.00%
• B)8.80%
• C)44.00%
• D)50.00%
• E)none of the above

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Definitions:

Premature Junctional Contractions

A type of abnormal heartbeat originating from the atrioventricular junction before the expected time.

Low-Density Lipoprotein

Often referred to as 'bad' cholesterol, it transports cholesterol particles throughout the body which can build up in the arteries leading to heart disease.

Aorta

The main trunk of the arterial system of the body.

Left Ventricle

The chamber of the heart that pumps oxygenated blood to the aorta and throughout the body.