Question: You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. (25 points) Year

  1. You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. (25 points)

Year

Papa Fund

Mama Fund

Market

Risk-Free

2015

-12.6%

-22.6%

-24.5%

1%

2016

25.4

18.5

19.5

3

2017

8.5

9.2

9.4

2

2018

15.5

8.5

7.6

4

2019

2.6

-1.2

-2.2

2

  1. What is the Sharpe ratio for both fund? (4 points)

  1. What is the Treynor ratio for both fund? (4 points)

  1. What is the Jensens alpha for both fund? (4 points)

  1. What is the information ratio for both fund? (4 points)

  1. What is R-squared for both fund? (4 points)

  1. Which is the best choice for your portfolio? (5 points)

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