Question: Exhibit 18.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM The last year's performance for four mutual funds is presented below. The market return was

Exhibit 18.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM The

Exhibit 18.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM The last year's performance for four mutual funds is presented below. The market return was 10.70 percent, the standard deviation was 13.1 percent last year, and the risk-free rate of return was 5%. Standard Deviation (%) Fund Beta Return (%) A 1.50 18.95 12.5 B 1.20 12.41 13.0 0.90 9.30 11.2 D 0.50 8.10 9.5 Refer to Exhibit 18.7. Compute the Treynor Measure for the C fund. a. 0.040 b. 0.069 C. 0.012 d. 1.142 e. 0.396

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