Author Question: The table below presents performance data for the Socially Responsible mutual fund over the last ... (Read 159 times)

jerry coleman · **on:** Jul 10, 2018

The table below presents performance data for the Socially Responsible mutual fund over the last five years. The table also includes information on the returns of the market index and T-Bills over the same period.

What is the Treynor Index for Socially Responsible?

Average Return Standard Deviation Beta
Socially Responsible 13 37.5 3
Market 6 15 1
T-Bills 1.5 N/A N/A

A) 2.3
B) 3.8
C) 7.0
D) 9.5
E) 11.5

Question 2

The ________ is the market of first sale in which companies first sell their authorized shares to the public.

A) primary market
B) secondary market
C) both primary and secondary markets
D) Nasdaq market

Dnite · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

B

Answer to Question 2

Answer: A
Explanation: A) There are two major markets for the sale of stock, the primary market and the secondary market. The primary market is the market of first sale, in which companies first sell their authorized shares to the public. The secondary market is the after-sale market of the existing outstanding shares in which individual or institutional owners of stocks sell their shares to other investors.