Question: You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and

measure for performance evaluation. The risk-free return during the sample period is

You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. Fund A Fund B Fund C Residual Average Standard Return Deviation Beta 20% 4.00% 0.8 21% 1.25% 1.0 23% 1.20% 1.2 The fund with the highest information ratio measure is

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