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The Following Data Are Available Relating to the Performance of Tiger

Question 10

Multiple Choice

The following data are available relating to the performance of Tiger Fund and the market portfolio: Tiger  Market  Portfolio  Average return 18%15% Standard deviations of returns 25%20% Beta 1.251.00 Residual standard deviation 2%0%\begin{array}{lcc} & \text {Tiger } & \text { Market } \\ &&\text { Portfolio }\\\text { Average return } & 18 \% & 15\% \\\text { Standard deviations of returns } & 25\% & 20\% \\\text { Beta } & 1.25 & 1.00 \\\text { Residual standard deviation } &2 \% & 0 \%\end{array}

The risk-free return during the sample period was 7%.
What is the information ratio measure of performance evaluation for Tiger Fund?


A) 1.00%
B) 8.80%
C) 44.00%
D) 50.00%

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