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Calculate the Sharpe ratio, Treynor Ratio, Jenson's Alpha, Information ratio and the R-Squared for both funds and determine which is the best choice for the
Calculate the Sharpe ratio, Treynor Ratio, Jenson's Alpha, Information ratio and the R-Squared for both funds and determine which is the best choice for the portfolio. 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 Index Risk-Free 2008 -12.6% -22.6 -24.5% 1% 2009 25.4 18.5 19.5 3 2010 8.5 9.2 9.4 2 2011 15.5 8.5 7.6 4 2012 2.6 -1.2 -2.2 2
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