USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 42

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The last year's performance for four mutual funds is presented below. The market return was 10.70 percent, the standard deviation was 13.1 percent last year, and the risk-free rate of return was 5%.

-Refer to Exhibit 18.7. Compute the Sharpe Measure for the A fund.

• A) 0.012
• B) 0.040
• C) 0.069
• D) 0.396
• E) 1.142

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Definitions:

Decompression Melting

The process where melting occurs in upwelling mantle material as it experiences lower pressures without a corresponding decrease in temperature, leading to magma formation.

Mantle-Derived Magmas

Magma that originates from the melting of the Earth's mantle, leading to volcanic activity.

Continental Crust

The layer of igneous, sedimentary, and metamorphic rocks that forms the continents and continental shelves, characterized by its thickness and composition distinct from oceanic crust.

Mafic Basalt

A type of basaltic rock that is rich in magnesium and iron, characterized by its dark color and low silica content.