23. Performance Metrics (LO1, CFA4) 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 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.