The Following Data Are Available Relating to the Performance of Sooner

question 50

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 Treynor measure of performance evaluation for Sooner Stock Fund?

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 9.44%
• E) 37.14%

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Definitions:

Minimal Risk

A research criterion indicating that the likelihood and magnitude of harm or discomfort anticipated in the research are not greater than those encountered in daily life or during routine physical or psychological examinations.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, typically measured to assess heart health.

Minimal Risk Research

Research in which participants are exposed to risks that are no greater than those encountered in daily life or in routine physical or psychological tests.

Routine Physiological Data

Regularly collected data related to the biological functions of an organism, often used in health and medical contexts.