The Following Data Are Available Relating to the Performance of Monarch

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { l c c } & & \text { Market } \\& \text { Monarch } & \text { Portfolio } \\\text { Average return } & 16 \% & 12 \% \\\text { Standard deviations of returns } & 26 \% & 22 \% \\\text { Beta } & 1.15 & 1.00 \\\text { Residual standard deviation } & 1 \% & 0 \% \\\end{array}$$ The risk-free return during the sample period was 4%. Calculate Treynor's measure of performance for Monarch Stock Fund.

A) 10.40%
B) 8.80%
C) 44.00%
D) 50.00%

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free