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

You want to evaluate three mutual funds using the Treynor measure

You want to evaluate three mutual funds using the Treynor measure for performance evaluation. The risk-free return during the sample period is 6%6. The average returns, standard deviations, and betas for the three funds are given below, in addition to information regarding the S&P 500 Index. Average Return Standard Deviation Beta Fund A 13 % 10 9 6 0.5 Fund B 19 % 20 96 1.0 Fund C 25 96 30 96 1.5 S&P 500 18 9 16 96 1.0 The fund with the highest Treynor measure is O Fund B. Fund C. Fund A. Funds A and B (tied for highest). Funds A and C (tied for highest)

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