QUESTION 23

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio with risk free rate equal to 4%.

For Monarch:

Average return (%) - 16

Standard deviations of returns(%) - 26

Beta - 1.15

Residual standard deviation (%) - 1

For Market Portfolio

Average return (%) - 12

Standard deviations of returns(%) - 22

Beta - 1

Residual standard deviation (%) - 0

Compute Sharp ratio and Traynor ratio as measures of performance evaluation for Monarch Stock Fund. What ratio do you think is better and why?

put all working out and dont use execl