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.