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 Treynor's measure of performance for Monarch Stock Fund.
A)10.40%
B)8.80%
C)44.00%
D)50.00%

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 Treynor's measure of performance for Monarch Stock Fund.
A)10.40% 
B)8.80% 
C)44.00% 
D)50.00%

Quizplus · Accepted Answer

(16 - 4)/1.15 = 10.4.

The Following Data Are Available Relating to the Performance of Monarch