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

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

a. Calculate the Sharpe ratio, Treynor ratio, Jensens alpha, information ratio, and R-squared for both funds.

b. What do you infer from the results in a?

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