The Following Data Are Available Relating to the Performance of Seminole

question 11

Multiple Choice

The following data are available relating to the performance of Seminole Fund and the market portfolio: $\begin{array}{lcc} & & \text { Market } \\& \text { Seminole}&\text{ Portfoli } \\\text { Average return } & 18 \% & 14 \% \\\text { Standard deviations of returns } & 30 \% & 22 \% \\\text { Beta } & 1.4 & 1.0 \\\text { Residual standard deviation } & 4.0 \% & 0.0 \%\end{array}$ The risk-free return during the sample period was 6%. Calculate the M² measure for the Seminole Fund.

• A) 4.0%
• B) 20.0%
• C) 2.86%
• D) 0.8%
• E) 40.0%

---

Definitions:

Public Safety

The protection of citizens from significant danger, injury, damage, or harm, provided by governmental organizations and agencies.

Efficient Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of a good or service that implies one person's consumption does not reduce its availability to others.

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.