The following information is to be used to answer the following questions
Over the 11-year period,1997-2007, the Market Index (MI) had an average annual return of 13.5 percent and a standard deviation of 9 percent. The average annual return on Treasury bills was 6.75 percent. For four open-end mutual funds, some summary data are shown:

-The mutual fund with the best performance, using Treynor's RVOL was:
A) Fund 1.
B) Fund 2.
C) Fund 3.
D) Fund 4.

Question

The following information is to be used to answer the following questions
Over the 11-year period,1997-2007, the Market Index (MI) had an average annual return of 13.5 percent and a standard deviation of 9 percent. The average annual return on Treasury bills was 6.75 percent. For four open-end mutual funds, some summary data are shown:
 
-The mutual fund with the best performance, using Treynor's RVOL was:
A) Fund 1. 
B) Fund 2. 
C) Fund 3. 
D) Fund 4.

Quizplus · Accepted Answer

Fund 1 has the highest Treynor's RVOL, indicating the best performance.

The Following Information Is to Be Used to Answer the Following