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Question
| Wildcat | Market Portfolio | |||||
| Average return | 18 | % | 15 | % | ||
| Standard deviations of returns | 25 | % | 20 | % | ||
| Beta | 25 | 1.00 | ||||
| Residual standard deviation | 2 | % | 0 | % | ||
51) The following data are available relating to the performance of Wildcat Fund and the market portfolio:
The risk-free return during the sample period was 7%.
Calculate Sharpe's measure of performance for Wildcat Fund.
A) 0.01
B) 0.08
C) 0.44
D) 0.50
E) 0.72
Answer
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