Question: You want to evaluate two mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 5.00%, and
You want to evaluate two mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 5.00%, and the average return on the market portfolio is 18.00%. The average returns, residual standard deviations, and betas for the three funds are given below. What is Fund A's Sharpe Ratio? What is Fund A's Information Ratio
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