The Following Data Are Available Relating to the Performance of Monarch

question 6

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 Treynor's measure of performance for Monarch Stock Fund.

• A) 0.0143
• B) 0.088
• C) 0.44
• D) 0.50

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Definitions:

Mixed Number

A number consisting of a whole number plus a fraction.

Repeating Decimal

A decimal number in which a sequence of digits is repeated indefinitely.

Decimal Notation

A system of numbers expressed in base 10, involving a decimal point to separate whole numbers from fractional parts.

Percent Equivalent

A value expressed as a percentage that represents a portion of a whole.