Question Details

Which one of the following is largely based on forecasts of macroeconomic 	


The information below applies to the next three questions (1-3)                           	The average returns, standard deviations and betas for three funds are given 	below along with data for the S&P 500 index. The risk free return during the 	sample period is 6%.
   
 1. 	You wish to evaluate the three mutual funds using the Sharpe measure for 	performance evaluation. The fund with the highest Sharpe measure of 	performance is __________. 						
	a.   Fund A
	b.   Fund B
	c.   Fund C
	d.   indeterminable


 2. 	You wish to evaluate the three mutual funds using the Treynor measure for 	performance evaluation. The fund with the highest Treynor measure of 	performance is __________. 						
a.   Fund A
	b.   Fund B
	c.   Fund C
	d.   indeterminable 
3. 	You wish to evaluate the three mutual funds using the Jensen measure for 	performance evaluation. The fund with the highest Jensen measure of 	performance is __________. 							
a.   Fund A
	b.   Fund B
	c.   Fund C
	d.   S&P500 
4. 	Which one of the following is largely based on forecasts of macroeconomic 	factors? 								
	a.   Security selection
	b.   Passive investing
	c.   Market efficiency
	d.   Market timing
5. 	In creating the T2 measure one mixes portfolio P and T-bills to match the _____ 	of the market and in creating the M2 measure one mixes portfolio P and T-bills to 	match the _____ of the market. 						
a.   alpha; beta
	b.   beta; alpha
	c.   beta; standard deviation
	d.   standard deviation; beta



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