5)Consider the five funds shown below:[5 MARKS]

Fund _a_ _b_ R²_

1 4.0 0.9 0.90

2 -1.6^* 1.2 0.95

3 2.5 0.9 0.90

4 1.2 0.8 0.89

5 0.9^* 1.3 0.90

^*Significant at the 5 percent level

a. Which fund's returns are best explained by the market's returns?(1)

b Which fund had the largest total risk?(1)

c. Which fund had the lowest market risk?The highest?(2)

d. Which fund(s), according to Jensen's alpha, outperformed the market