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D. RETURN or RISK ,

REDUCED BY THE COST OF INCOMPLETE or INCREASED BY THE BENEFIT OF PERFECT

BETTER or WORSE

FUND 1 or FUND 2

Consider the following historical performance data for two different portfolios, the Standard and Poor's 500, and the 90-day T-bill. a. Calculate the Fama overall performance measure for both funds. Round your answers to two decimal places. Overall performance (Fund 1 ): Overall performance (Fund 2 ): b. What is the return to risk for both funds? Do not round intermediate calculations. Round your answers to two decimal places. Return to risk (Fund 1 ): % Return to risk (Fund 2 ): d. Explain the meaning of the net selectivity measure and how it helps you evaluate investor performance. Which fund had the ucs pea: The net selectivity is an unexplained portion of the excess I diversification. The higher the net selectivity the nvestor performance is. had the best performance