The Following Data Are Available Relating to the Performance of Sooner

question 50

Multiple Choice

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: $\begin{array}{lcc} & & \text { Market } \\ & \text { Sooner } & \text { Portfolio } \\\text { Average return } & 20 \% & 11 \% \\\text { Standard deviations of returns }& 44 \% & 19\% \\\text { Beta } & 1.8 & 1.0 \\\text { Residual standard deviation } & 2.0\% & 0.0\%\end{array}$ The risk-free return during the sample period was 3%. What is the Treynor measure of performance evaluation for Sooner Stock Fund?

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 9.44%
• E) 37.14%

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Definitions:

Self-Serving Bias

A cognitive bias that involves individuals attributing their successes to internal factors and their failures to external factors.

Actor-Observer Bias

The tendency to attribute one's own actions to external circumstances while attributing other people's behaviors to their internal characteristics.

Self-Enhancing Strategy

A psychological concept where individuals focus on their strengths and achievements to maintain or enhance their self-esteem.

Collectivism

Collectivism is an ideology that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.