The following data are available relating to the performance of Scooner Stock Fund and the market portfolio: $\begin{array}{lcc}& \text{ Scooner }& \text{ Market }\\ & & \text{ Portfolio }\\ \text{ Average return }& 19\%& 12\%\\ \text{ Standard deviations of returns }& 35\%& 15\%\\ \text{ Beta }& 1.5& 1.0\\ \text{ Residual standard deviation }& 3.0\%& 0.0\%\end{array}$

The risk-free return during the sample period was 6%.
What is the Treynor measure of performance evaluation for Scooner Stock Fund?

A) 1.33%
B) 4.00%
C) 8.67%
D) 31.43%
E) 37.14%

Treynor Measure

A performance metric for determining how well an investment portfolio or fund has performed on a risk-adjusted basis, using beta as the risk measure.

Residual Standard Deviation

A measure of the amount of variability or dispersion of a set of data points around a regression line not explained by the regression itself.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market, while a beta less than 1 indicates lower volatility.