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 Jensen's measure of performance for Monarch Stock Fund.
A) 1.00%
B) 2.80%
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 Jensen's measure of performance for Monarch Stock Fund.
A) 1.00% 
B) 2.80% 
C) 44.00% 
D) 50.00%

Quizplus · Accepted Answer

16 - [4 + 1.15 (12 - 4)] = 2.80%.

The Following Data Are Available Relating to the Performance of Monarch