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The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: Monarch Market Portfolio Average return 16 % 12
The following data are available relating to the performance of Monarch Stock Fund and the market portfolio:
Monarch | Market Portfolio | |||
Average return | 16 | % | 12 | % |
Standard deviations of returns | 26 | % | 22 | % |
Beta | 1.15 | 1.00 | ||
Residual standard deviation | 1 | % | 0 | % |
The risk-free return during the sample period was 4%. Calculate Sharpe's measure of performance for Monarch Stock Fund.
Multiple Choice
1%
46%
44%
50%
None of the options are correct.
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