The Following Data Are Available Relating to the Performance of Long

question 44

Multiple Choice

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

The risk-free return during the sample period was 6%.
Calculate the information ratio for Long Horn Stock Fund.

• A) 1.33
• B) 4.00
• C) 8.67
• D) 31.43
• E) 37.14

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Definitions:

Bank Errors

Mistakes made by a bank in the accounting records or transactions related to a customer's account.

Bank Reconciliation

Bank reconciliation is a process that matches the balance on a company’s books to the corresponding amount on its bank statement, confirming that figures are correct and in agreement.

Accounting Records

Financial documents and files that systematically record all monetary transactions of an entity.

Cash Account

An account that records all transactions involving cash inflows and outflows.