The following data are available relating to the performance of Monarch Stock Fund and the market portfolio:

The risk-free return during the sample period was 4%.
Calculate Sharpe's measure of performance for Monarch Stock Fund.
A) 0.01
B) 0.46
C) 0.44
D) 0.55
E) None of the options are correct.

Question

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio:

The risk-free return during the sample period was 4%.
Calculate Sharpe's measure of performance for Monarch Stock Fund.
A) 0.01 
B) 0.46 
C) 0.44 
D) 0.55 
E) None of the options are correct.

Quizplus · Accepted Answer

(0.16 − 0.04)/0.26 = 0.46

The Following Data Are Available Relating to the Performance of Monarch