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

question 66

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 Treynor Measure for the C fund.

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

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Definitions:

PTSD

Post-Traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Traumatic Event

An emotionally distressing or life-threatening experience that can have lasting effects on an individual's mental and physical well-being.

Intense Response

A strong or extreme reaction to a particular stimulus or event.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.