Question: QUESTION 47 You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample perlod is 6%.

Sharpe measure for performance evaluation. The risk-free return during the sample perlod

QUESTION 47 You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample perlod is 6%. The average returns, standard deviations and betas for the three funds are given below, as are the data for the S&P 500 index Fund A Fund B Fund S&P 500 Average Return 24% 12% 22% 18% Standard Deviation 30% 10% 20% 16% Beta 1.5 0.5 1.0 1.0 The fund with the highest Sharpe measure is Fund A Fund B Fund Funds A and B (tied for highest Funds A and tied for highest) QUESTION 52 You purchase one MBI March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy is $1,000 $120 $12,000 $11,000

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