The Witney Growth Fund, a no- fee managed fund, had a net tangible asset value per unit of $54.28 one year ago. Its current net tangible asset value is $56.93. During the year it paid out dividends and capital gains of
$2.08 per unit. It has a beta value of 1.75. Over the same period the market return was 6.4% and the risk- free rate of return was 3.5%.
(a) Calculate Treynor's measure for the Witney Growth Fund. (Show all work.)
(b) Based on Treynor's measure, how did the fund perform in relation to the overall market?

Question

Quizplus · Accepted Answer

The Answer of The Witney Growth Fund, a no- fee managed fund, had a net tangible asset value per unit of $54.28 one year ago. Its current net tangible asset value is $56.93. During the year it paid out dividends and capital gains of
$2.08 per unit. It has a beta value of 1.75. Over the same period the market return was 6.4% and the risk- free rate of return was 3.5%.
(a) Calculate Treynor's measure for the Witney Growth Fund. (Show all work.)
(b) Based on Treynor's measure, how did the fund perform in relation to the overall market?

The Witney Growth Fund, a No- Fee Managed Fund, Had