You want to evaluate three mutual funds using the Jensen measure for performance evaluation.The risk-free return during the sample period is 6%,and the average return on the market portfolio is 18%.The average returns,standard deviations,and betas for the three funds are given below. $$\begin{array}{l}
\begin{array} { l l l l }
\text { Average Return } & \text { Standard Deviation }&\text { Beta } \
\text { Fund A } &17.6 \% & 10 \% & 1.2\
\text { Fund B } &17.5\%&20\%&1.0\
\text { Fund C } &17.4\%&30\%&0.8\
\end{array}
\end{array}$$
The fund with the highest Jensen measure is _________.

Question

You want to evaluate three mutual funds using the Jensen measure for performance evaluation.The risk-free return during the sample period is 6%,and the average return on the market portfolio is 18%.The average returns,standard deviations,and betas for the three funds are given below. $$\begin{array}{l}
\begin{array} { l l l l } 
\text { Average Return } & \text { Standard Deviation }&\text { Beta } \
\text { Fund A } &17.6 \% & 10 \% & 1.2\
\text { Fund B } &17.5\%&20\%&1.0\
\text { Fund C } &17.4\%&30\%&0.8\
\end{array}
\end{array}$$
The fund with the highest Jensen measure is _________.

Quizplus · Accepted Answer

The Answer of You want to evaluate three mutual funds using the Jensen measure for performance evaluation.The risk-free return during the sample period is 6%,and the average return on the market portfolio is 18%.The average returns,standard deviations,and betas for the three funds are given below. $$\begin{array}{l}
\begin{array} { l l l l } 
\text { Average Return } & \text { Standard Deviation }&\text { Beta } \
\text { Fund A } &17.6 \% & 10 \% & 1.2\
\text { Fund B } &17.5\%&20\%&1.0\
\text { Fund C } &17.4\%&30\%&0.8\
\end{array}
\end{array}$$
The fund with the highest Jensen measure is _________.

You Want to Evaluate Three Mutual Funds Using the Jensen