Suppose during this four-year period, portfolios of similar risk yielded a 3% rate of return. Repeated here is the fact pattern from the above problems:

Year Return Jacks investment

1 30% $0

2 10% $1,000

3 -5% $500

4 -10% $500

Given this information Jack should take the following view of the 4-year period as a whole:

Select one:

a. Be happy that his return was greater than what he could reasonably expect, and especially happy with his good timing.

b. Be convinced that his manager did no better and no worse than expected, and that his timing was irrelevant.

c. Be convinced that his manager did better than expected, and better than Jack did with his timing.

d. Be angry that the fund manager did more poorly than similar portfolios and only Jacks good timing averted a disaster.