You have been given the following return information for two mutual funds (Papa and Mama), the market index and the risk free rate Year Papa Fund Mama Fund Market Risk free 2008 12 6 22 6 24 5 1 2009 25 4 18 5 19 5 3 2010 8 5 9 2 9 4 2 2011 15 5 8 5 7 6 4 2012 2 6 1 2 2 2 2 Calculate the Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, and R squared for both funds and determine which is the best choice for your portfolio

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Question: You have been given the following return information for two mutual funds (Papa and Mama), the market index and the risk-free rate. Year Papa Fund

You have been given the following return information for two mutual funds (Papa and Mama), the market index and the risk-free rate.

Year	Papa Fund	Mama Fund	Market	Risk-free
2008	12.6%	-22.6%	-24.5%	1%
2009	25.4	18.5	19.5	3
2010	8.5	9.2	9.4	2
2011	15.5	8.5	7.6	4
2012	2.6	-1.2	-2.2	2

Calculate the Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, and R-squared for both funds and determine which is the best choice for your portfolio.

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