The Average Returns, Standard Deviations and Betas for Three Funds

question 8

Multiple Choice

The average returns, standard deviations and betas for three funds are given below along with data for the S&P 500 index. The risk free return during the sample period is 6%.
-You wish to evaluate the three mutual funds using the Jensen measure for performance evaluation.The fund with the highest Jensen measure of performance is __________.

• A) Fund A
• B) Fund B
• C) Fund C
• D) S&P500

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Definitions:

Exchange Relationship

A social relationship based on reciprocal actions where each party provides something of value to the other.

Role Clarity

The extent to which individual roles and responsibilities within an organization or group are clearly defined and understood.

Citizenship Behaviors

Voluntary and beneficial actions employees do to help others and the organization, beyond their formal duties.

Favorable Behavior

involves actions or conduct that positively impact situations or relations, often leading to beneficial outcomes or improved perceptions.