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