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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Definitions:

REM Sleep

A phase of sleep characterized by rapid eye movements, increased brain activity, paralysis of major muscles, and vivid dreaming.

Information-Processing

The way humans and computers process and organize information, including perception, memory, and decision-making.

Unusual Phrases

Strings of words that are not commonly used together, often attracting attention due to their novelty or oddity.

Activation-Synthesis

A theory that suggests dreams are the result of the brain's attempt to make sense of neural activity that occurs during sleep, particularly during REM sleep.