The Following Data Are Available Relating to the Performance of Wildcat

question 9

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 Treynor's measure of performance for Wildcat Fund.

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

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Definitions:

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Joining Union

The act of an employee becoming a member of a labor union to gain collective bargaining power and workplace protections.