Question: 1. You want to evaluate three mutual funds using the M2 measure for performance evaluation. The risk-free return during the sample period is 4%. The

1. You want to evaluate three mutual funds using the M2 measure for performance evaluation. The risk-free return during the sample period is 4%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index. Standard Average Return Deviation Beta FundA 24% 30% 1.5 The fund with the Fund B 12% 10% 05 highest M2 measure is Fund C 22% 20% 1.0 . S&P 500 18% 16% 1.0 A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest)

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