You Want to Evaluate Three Mutual Funds Using the Sharpe

question 19

Multiple Choice

You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample period is 5%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index.

The investment with the highest Sharpe measure is

• A) Fund A.
• B) Fund B.
• C) Fund C.
• D) the index.
• E) Funds A and C (tied for highest).

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Definitions:

Genetic Exchange

The transfer of genetic information between organisms, which can occur through processes like conjugation, transformation, or transduction in bacteria.

Gel Electrophoresis

A laboratory method used for the separation of DNA, RNA, or proteins based on their size and charge by applying an electric field to a gel matrix.

Electrical Field

A region around a charged particle where electric forces are exerted on other electrically charged particles or objects.

DNA Fragments

Pieces of DNA cut from a larger sequence by enzymes, used in various genetic analyses and manipulations.