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%

Question

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%

Quizplus · Accepted Answer

22/30 = .7333; 1 - .7333 = .2667; M₂ = [.7333 (18) + .2667 (6)] - 14 = 0.8%.

The Following Data Are Available Relating to the Performance of Seminole