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Question
| Seminole | Market Portfolio | |||||
| Average return | 18 | % | 14 | % | ||
| Standard deviations of returns | 30 | % | 22 | % | ||
| Beta | 4 | 1.0 | ||||
| Residual standard deviation | 4.0 | % | 0.0 | % | ||
47) The following data are available relating to the performance of Seminole Fund and the market portfolio:
The risk-free return during the sample period was 6%.
Calculate the M2 measure for the Seminole Fund.
A) 4.0%
B) 20.0%
C) 2.86%
D) 0.8%
E) 40.0%
Answer
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