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, Jensens alpha, information ratio, and R squared for both funds and determine which is the best choice for your portfolio Yea...

Input Area Year Averages Standard Deviation Papa 1260 2011 2012 2540 2013 850 2014 1550 2015 260 ...

You have been given the following return information for two mutual funds (Papa and Mama), the market

Question:

You have been given the following return information for two (Papa and Mama), the market index, and the risk-free rate. Year Risk-Free Papa Fund Mama Fund Market - 12.6% 2011 -22.6% -24.5% 1% 18.5 19.5 2012 25.4 2013 8.5 9.2 9.4 8.5 2014 15

Year Risk-Free Papa Fund Mama Fund Market - 12.6% 2011 -22.6% -24.5% 1% 18.5 19.5 2012 25.4 2013 8.5 9.2 9.4 8.5 2014 15

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.

Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...