The Following Data Are Available Relating to the Performance of Wildcat

question 15

Multiple Choice

The following data are available relating to the performance of Wildcat Fund and the market portfolio: $$\begin{array} { l c c } & & { \text { Market } } \\& \text { Wildcat } & \text { Portfolio } \\\text { Average return } & 18 \% & 15 \% \\\text { Standard deviations of returns } & 25 \% & 20 \% \\\text { Beta } & 1.25 & 1.00 \\\text { Residual standard deviation } & 2 \% & 0 \%\\\end{array}$$ The risk-free return during the sample period was 7%. Calculate Sharpe's measure of performance for Wildcat Fund.

• A) 1.00%
• B) 8.80%
• C) 44.00%
• D) 50.00%

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Definitions:

Secondary Voltage

A voltage that is output by the secondary winding of a transformer.

Primary Voltage

The initial voltage level supplied to a transformer or another primary component in a circuit.

Magnetically Operated

Describes devices or mechanisms that are controlled or actuated through magnetic force or fields, often found in relays and circuit breakers.

Impedance

The combined effect of resistance, inductance, and capacitance on alternating current, expressed in ohms, which inhibits the flow of electricity in a circuit.