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The following data are available relating to the performance of Wildcat Fund and the market portfolio: Wildcat Market Portfolio Average return 18 % 15 %

The following data are available relating to the performance of Wildcat Fund and the market portfolio:

Wildcat Market Portfolio
Average return 18 % 15 %
Standard deviations of returns 25 % 20 %
Beta 1.25 1.00
Residual standard deviation 2 % 0 %

The risk-free return during the sample period was 7%. What is the information ratio measure of performance evaluation for Wildcat Fund?

Multiple Choice

  • 1.00%

  • 8.80%

  • 44.00%

  • 50.00%

  • 67.00%

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