The Following Data Are Available Relating to the Performance of Sooner

question 55

Multiple Choice

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: $\begin{array}{lcc} & & \text { Market } \\ & \text { Sooner } & \text { Portfolio } \\\text { Average return } & 20 \% & 11 \% \\\text { Standard deviations of returns }& 44 \% & 19\% \\\text { Beta } & 1.8 & 1.0 \\\text { Residual standard deviation } & 2.0\% & 0.0\%\end{array}$ The risk-free return during the sample period was 3%. What is the Sharpe measure of performance evaluation for Sooner Stock Fund?

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 38.6%
• E) 37.14%

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Definitions:

Adduct

To move a limb or other body part toward the midline of the body.

Wrist

The joint connecting the hand and the forearm.

Muscles

Tissue composed of fibers capable of contracting to produce movement or maintain the position of parts of the body.

Joint

A structure in the human or animal body where two parts of the skeleton are fitted together, allowing for movement or flexibility.