The Following Data Are Available Relating to the Performance of Long

question 65

Multiple Choice

The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: $$\begin{array} { l c c } & & \text { Market } \\& \text { Long Horn}& \text { Portfolio } \\\text { Average return } & 19 \% & 12 \% \\\text { Standard deviations of returns } & 35 \% & 15 \% \\\text { Beta } & 1.5 & 1.0 \\\text { Residual standard deviation } & 3.0 \% & 0.0 \% \\\end{array}$$ The risk-free return during the sample period was 6%. Calculate the Jensen measure of performance evaluation for Long Horn Stock Fund.

• A) 1.33%
• B) 4.00%
• C) 8.67%
• D) 31.43%
• E) 37.14%

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Definitions:

Hearing Loss

A decrease in the ability to perceive sounds compared to what is considered normal.

Preventable

Capable of being stopped or avoided through proactive measures or actions.

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A steroid hormone produced by the adrenal glands, involved in stress responses, metabolism, and immune function.

Diabetes

A chronic health condition where the body is unable to properly process glucose, leading to elevated blood sugar levels.