CASE STUDY:

You are given the following historical performance information on the capital market and a mutual fund:

Year	Mutual fund beta	Mutual fund return (per cent)	Return on market index (per cent)	Return on Govt. securities (per cent)
1 2 3 4 5 6 7 8 9 10	0.90 0.95 0.95 1.00 1.00 0.90 0.80 0.75 0.75 0.70	- 3.00 1.50 18.00 22.00 10.00 7.00 18.00 24.00 15.00 - 2.00	- 8.50 4.00 14.00 18.50 5.70 1.20 16.00 18.00 10.00 8.00	6.50 6.50 6.00 6.00 5.75 5.75 6.00 5.50 5.50 6.00

Calculate the following risk adjusted return measures for the mutual fund:

1. Reward-to-variability ratio or Sharpe ratio
2. Reward-to-volatilityratioorTreynorratio.
3. Commentonthemutualfundsperformance.