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%. 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

Question

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%.  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

Quizplus · Accepted Answer

The Answer is B

The Average Returns, Standard Deviations and Betas for Three Funds