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

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

Calculate the Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, and R-squared for both funds and determine which is the best choice for your portfolio.

Market Risk-Free Year 2008 2009 2010 2011 2012 Papa Fund -12.6% 25.4 8.5 15.5 2.6 Mama Fund -22.6% 18.5 9.2 8.5 -24.5% 19.5 9.4 7.6 2.2 1% 4

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