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

The risk-free return during the sample period was 7%.
Calculate Sharpe's measure of performance for Wildcat Fund.
A) 0.01
B) 0.08
C) 0.44
D) 0.50
E) 0.72

Question

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

The risk-free return during the sample period was 7%.
Calculate Sharpe's measure of performance for Wildcat Fund.
A) 0.01 
B) 0.08 
C) 0.44 
D) 0.50 
E) 0.72

Quizplus · Accepted Answer

(0.18 − 0.07)/0.25 = 0.44.

The Following Data Are Available Relating to the Performance of Wildcat