2 Suppose that you are managing three security portfolio funds The risk free rate, average returns, standard deviations, and betas for three funds and the S P 500 are given below Fund Average Return Standard Deviation Beta A 15 20 0 8 B 20 30 1 2 S P 500 Index 12 18 Risk free Asset 3 Compute the Treynor ratio of each fund Based on the Treynor measure, determine which fund performed the best risk adjusted return

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Question: 2 - Suppose that you are managing three security portfolio funds. The risk-free rate, average returns, standard deviations, and betas for three funds and the

2 - Suppose that you are managing three security portfolio funds. The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below.

Fund	Average Return	Standard Deviation	Beta
A	15%	20%	0.8
B	20%	30%	1.2
S&P 500 Index	12%	18%
Risk-free Asset	3%

Compute the Treynor ratio of each fund. Based on the Treynor measure, determine which fund performed the best risk-adjusted return. .

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