$2$ You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The riskfree return during the sample period is $6\%,$ and the average return on the market portfolio is $19\%.$ The average returns, residual standard deviations, and betas for the three funds are given below.

$\backslash$table$[[,$Average Return,$\backslash$table$[[$Residual Standard$],[$Deviation$]],$Beta$],[$Fund A$,20\%,4\mathrm{.}00\%,0\mathrm{.}8],[$Fund B$,21\%,1\mathrm{.}25\%,1\mathrm{.}0],[$Fund C$,23\%,1\mathrm{.}20\%,1\mathrm{.}2]]$

The fund with the lowest information ratio measure is:

Select one alternative:

Fund B$.$

Funds A and $B($tied for highest$).$

Fund A$.$

Fund $C.$