The Following Data Are Available Relating to the Performance of Monarch

question 54

Multiple Choice

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio:

The risk-free return during the sample period was 4%.
Calculate Sharpe's measure of performance for Monarch Stock Fund.

• A) 0.01
• B) 0.46
• C) 0.44
• D) 0.55
• E) None of the options are correct.

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Definitions:

Accounting Period

A specific duration of time, such as a month, quarter, or year, over which financial activities are recorded and reported.

Cash Received

The amount of money taken in by a business during a particular period, including transactions in cash and equivalents.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for most general and financial purposes.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements.