The Following Data Are Available Relating to the Performance of Monarch

question 24

Multiple Choice

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { l c c } && { \text { Market } } \\& \text { Monarch } & \text { Portfolio } \\\text { Average return } & 16 \% & 12 \% \\\text { Standard deviations of returns } &26 \% & 22 \% \\\text { Beta } & 1.15 & 1.00 \\\text { Residual standard deviation } &1\%&0\%\\\end{array}$$ The risk-free return during the sample period was 4%. Calculate Jensen's measure of performance for Monarch Stock Fund.

• A) 1.00%
• B) 2.80%
• C) 44.00%
• D) 50.00%

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Definitions:

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A form of psychotherapy that targets changing negative thought patterns to improve mood and behavior.

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A classification of depression where individuals experience consistent and noticeable, but not severe, symptoms that negatively affect daily functioning.

Cognitive Therapy

A form of psychotherapy that aims to change patterns of thinking or behavior that are responsible for people's problems, leading to improvement in their emotional state and functionality.