The Following Data Are Available Relating to the Performance of Monarch

question 24

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 Jensen's measure of performance for Monarch Stock Fund.

• A) 1.00%
• B) 2.80%
• C) 44.00%
• D) 50.00%

---

Definitions:

Process Skills

The abilities required to manage and execute processes in an organization efficiently, including planning, monitoring, and optimizing various operational or production processes.

Negotiating Skills

The abilities required to effectively discuss, persuade, and come to mutually beneficial agreements or solutions between parties.

Cooperative Teamwork Skills

Abilities and techniques utilized by individuals to work effectively within a team, emphasizing collaboration and mutual benefits.

Egalitarian People

Individuals who believe in the equality of all people, especially in political, social, or economic life.