Exhibit 18-11
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 11

Multiple Choice

Exhibit 18-11
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The last year's performance for four mutual funds is presented below. The market return was 10.70%, last year with a standard deviation of 13.1% and the risk-free rate of return was 5%. $$\begin{array} { c c c c } \text { Fund } & \text { Beta } & \begin{array} { c } \text { Standard } \\\text { Deviation (\%) }\end{array} & \text { Return (\%) } \\\hline \text { A } & 1.50 & 18.95 & 12.5 \\\text { B } & 1.20 & 12.41 & 13.0 \\\text { C } & 0.90 & 9.30 & 11.2 \\\text { D } & 0.50 & 8.10 & 9.5\end{array}$$
-Refer to Exhibit 18-11. Compute the Sharpe Measure for the A fund.

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

---

Definitions:

Recognizing Irony

The ability to understand when a statement is used to convey a meaning that is opposite to its literal meaning, often for humorous or emphatic effect.

Age

A measure of the time an individual has lived, often used as a key demographic variable.

Perspective-Taking Skills

The abilities involved in understanding and considering others' viewpoints, attitudes, and emotions from their perspective.

Cognitive Developed

The process of growth and change in intellectual abilities such as thinking, reasoning, and understanding over the lifespan.