You Want to Evaluate Three Mutual Funds Using the Treynor

question 2

Multiple Choice

You want to evaluate three mutual funds using the Treynor measure for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, in addition to information regarding the S&P 500 Index. $$\begin{array} { c c r r } & \begin{array} { c } \text { Average } \\\text { Return }\end{array} & \begin{array} { r } \text { Standard } \\\text { Deviation }\end{array} & \text { Beta } \\\hline \text { Fund A } & 13 \% & 10 \% & 0.5 \\\text { Fund B } & 19 \% & 20 \% & 1.0 \\\text { Fund C } & 25 \% & 30 \% & 1.5 \\\text { S\&P 500 } & 18 \% & 16 \% & 1.0\end{array}$$ The fund with the highest Treynor measure is

• A) Fund A.
• B) Fund B.
• C) Fund C.
• D) Funds A and B (tied for highest).
• E) Funds A and C (tied for highest).

Understand the legal framework surrounding the use of software licenses and copyright.

Recognize the implications of federal laws on digital marketing practices.

Identify the elements and legality of cybersquatting under federal law protecting trademarks.

Comprehend the protections and liabilities involved in digital communication and commerce under federal regulation.

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Definitions:

Capillaries

Tiny blood vessels that connect arteries and veins, facilitating the exchange of water, oxygen, carbon dioxide, and other substances between blood and tissues.

Arterioles

Small branches of arteries leading into capillaries, responsible for controlling blood flow and pressure.

Phagocytic White Blood Cells

White blood cells that protect the body by ingesting harmful foreign particles, bacteria, and dead or dying cells.

White Blood Cell

Leukocyte; a blood cell with a role in housekeeping and defense. Lymphocytes are a special category of white blood cells that carry out adaptive immune responses.