Question: 9 You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%,

You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 18%. The average returns, residual standard deviations, and betas for the three funds are given below.

	Average Return		Residual Standard Deviation		Beta
Fund A	17.6	%	10.00	%	1.2
Fund B	17.5	%	20	%	1.0
Fund C	17.4	%	30	%	0.8

the fund with the highest jensen measure

a C

b A

c A and B

d A and C

e B

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