The Following Data Are Available Relating to the Performance of Long

question 54

Multiple Choice

The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: $$\begin{array} { l c c } & & \text { Market } \\& \text { Long Horn}& \text { Portfolio } \\\text { Average return } & 19 \% & 12 \% \\\text { Standard deviations of returns } & 35 \% & 15 \% \\\text { Beta } & 1.5 & 1.0 \\\text { Residual standard deviation } & 3.0 \% & 0.0 \% \\\end{array}$$ The risk-free return during the sample period was 6%. What is the Treynor measure of performance evaluation for Long Horn Stock Fund?

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 31.43%
• E) 37.14%

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Definitions:

Evolutionary Bases

Fundamental principles or reasons for something based on evolutionary theory, highlighting how inherited traits have developed over time through natural selection.

Babyness

An attribute or quality that evokes the appearance or characteristics typical of a baby, often used in psychology to discuss features that elicit caregiving responses.

Caregiving Behaviors

Actions performed to provide support and meet the physical or emotional needs of others.

Lorenz

Konrad Lorenz, an Austrian zoologist, ethologist, and ornithologist known for his foundational work in the study of animal behavior.