The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | }
\hline & \text { Sooner } & \text { Market Portfolio } \
\hline \text { Average Return } & 20 \% & 11 \% \
\hline \text { Standard Deviation of Returns } & 44 ^ { \circ } \% & 19 \% \
\hline \text { Beta } & 1.8 & 1.0 \
\hline \text { Residual standard deviation } & 2.0 \% & 0.0 \% \
\hline
\end{array}$$ The risk-free return during the sample period was 4%.
-Calculate the information ratio for Sooner Stock Fund.
A)1.53
B)1.30
C)8.67
D)31.43
E)37.14

Question

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | } 
\hline & \text { Sooner } & \text { Market Portfolio } \
\hline \text { Average Return } & 20 \% & 11 \% \
\hline \text { Standard Deviation of Returns } & 44 ^ { \circ } \% & 19 \% \
\hline \text { Beta } & 1.8 & 1.0 \
\hline \text { Residual standard deviation } & 2.0 \% & 0.0 \% \
\hline
\end{array}$$ The risk-free return during the sample period was 4%.
-Calculate the information ratio for Sooner Stock Fund.
A)1.53
B)1.30
C)8.67
D)31.43
E)37.14

Quizplus · Accepted Answer

The Answer of The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | } 
\hline & \text { Sooner } & \text { Market Portfolio } \
\hline \text { Average Return } & 20 \% & 11 \% \
\hline \text { Standard Deviation of Returns } & 44 ^ { \circ } \% & 19 \% \
\hline \text { Beta } & 1.8 & 1.0 \
\hline \text { Residual standard deviation } & 2.0 \% & 0.0 \% \
\hline
\end{array}$$ The risk-free return during the sample period was 4%.
-Calculate the information ratio for Sooner Stock Fund.
A)1.53
B)1.30
C)8.67
D)31.43
E)37.14

The Following Data Are Available Relating to the Performance of Monarch