You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation....
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You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation. The current risk-free rate is 1% and the expected return of the market is 10%. The average return, residual standard deviation, and beta of these three institutional funds are reported below: MSF DFA FIF Return FIF (worst) and DFA (best) MSF (worst) and FIF (best) DFA (worst) and FIF (best) MSF (worst) and DFA (best) 10% 9% 13% Residual Standard deviation 25% 14% 18% Beta 1.20 0.55 1.30 Please identify below the correct combination of the worst performing fund and the best performing fund based on the Jensen's alpha measure of performance evaluation. You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation. The current risk-free rate is 1% and the expected return of the market is 10%. The average return, residual standard deviation, and beta of these three institutional funds are reported below: MSF DFA FIF Return FIF (worst) and DFA (best) MSF (worst) and FIF (best) DFA (worst) and FIF (best) MSF (worst) and DFA (best) 10% 9% 13% Residual Standard deviation 25% 14% 18% Beta 1.20 0.55 1.30 Please identify below the correct combination of the worst performing fund and the best performing fund based on the Jensen's alpha measure of performance evaluation.
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