Consider the Data Presented Below on Three Mutual Funds and the Market

question 1

Multiple Choice

Consider the data presented below on three mutual funds and the market. Compute the Sharpe Measure for the AAA fund.

• A) 4.49
• B) 2.74
• C) 1.57
• D) 1.70
• E) 1.27

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Definitions:

Gestalt Principle

Psychological concepts that describe how humans tend to organize visual elements into groups or unified wholes when perceiving objects.

Proximity

A principle of perception that elements close to each other tend to be perceived as a group.

Similarity

The state or fact of being alike; often used to describe how alike two or more objects, ideas, or concepts are.

Closure

The psychological term for seeking a sense of resolution or completion.