The Following Data Are Available Relating to the Performance of Monarch

question 80

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%.
-What is the information ratio measure of performance evaluation for Monarch Stock Fund?

• A)1.00%
• B)280.00%
• C)44.00%
• D)50.00%
• E)none of the above

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Definitions:

Deviance

refers to behaviors or actions that violate societal norms and expectations, which can range from minor breaches to major offenses.

Conflict Theory

A sociological perspective that views social life as a competition and conflict between groups for limited resources.

Deviance

Behaviors or actions that violate societal norms, and which may attract social disapproval or sanction.

Power

The power to control or shape the actions of others and steer the direction of events.