The Following Data Are Available Relating to the Performance of Monarch

question 61

Multiple Choice

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { l c c } && { \text { Market } } \\& \text { Monarch } & \text { Portfolio } \\\text { Average return } & 16 \% & 12 \% \\\text { Standard deviations of returns } &26 \% & 22 \% \\\text { Beta } & 1.15 & 1.00 \\\text { Residual standard deviation } &1\%&0\%\\\end{array}$$ The risk-free return during the sample period was 4%. Calculate Sharpe's measure of performance for Monarch Stock Fund.

• A) 1%
• B) 46%
• C) 44%
• D) 50%
• E) None of the options are correct.

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Definitions:

Complex

To Jung, a core or pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme, such as power or status.

Inferiority Complex

A condition that develops when a person is unable to compensate for normal inferiority feelings.

Organic Inferiority

A term used in Adlerian psychology to describe a perceived or actual physical limitation, which an individual may compensate for by developing certain skills or behaviors.

Inferiority Feelings

Emotions or perceptions of being lesser or inadequate in comparison to others or one's ideals, often discussed in the context of social comparison and personal development.