You Want to Evaluate Three Mutual Funds Using the Sharpe

question 5

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 6%. 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 fund with the highest Sharpe measure is

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

Analyze the effect of consumer satisfaction on purchasing decisions.

Understand the concept of profit sharing and its effectiveness in different economic conditions.

Recognize various job design concepts including job breadth, depth, and enrichment.

Identify and differentiate among common gain-sharing plans.

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Definitions:

Accomplishments

Achievements, successes, or completed goals, often resulting from effort or skill.

Spotlight Effect

The cognitive bias where an individual overestimates how much others notice their appearance or behavior.

Self-efficacy

An individual's belief in their capacity to perform tasks needed to realize specific results.

Collectivist Self

An aspect of self-identity that is defined and valued by in-group relationships, prioritizing the group over the individual.