The Following Data Are Available Relating to the Performance of Seminole

question 11

Multiple Choice

The following data are available relating to the performance of Seminole Fund and the market portfolio: $\begin{array}{lcc} & & \text { Market } \\& \text { Seminole}&\text{ Portfoli } \\\text { Average return } & 18 \% & 14 \% \\\text { Standard deviations of returns } & 30 \% & 22 \% \\\text { Beta } & 1.4 & 1.0 \\\text { Residual standard deviation } & 4.0 \% & 0.0 \%\end{array}$ The risk-free return during the sample period was 6%. Calculate the M² measure for the Seminole Fund.

• A) 4.0%
• B) 20.0%
• C) 2.86%
• D) 0.8%
• E) 40.0%

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Definitions:

Disturbance

An interruption of a peaceful or calm state, or an event that causes turmoil or disruption.

Inhibition

The process of restraining or decreasing the rate of a reaction, often used in the context of neural processes and psychological responses.

Adaptation

The process by which organisms adjust to new environments or changes in their current environment, enhancing their survival and reproduction abilities.

Catharsis Hypothesis

A theory suggesting that expressing or experiencing strong emotions can lead to a reduction in tension or aggression.