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Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all

image text in transcribed Consider now a market where three funds can be traded, and you want to understand which is the best investment for you, based on all the performance measurement tools learned in class. The numbers are: Beta Tracking Error Fund 1 10.50% 16.50% 0.10 18.00% Fund 2 16.50% 23.50% 1.10 21.00% Fund 3 35.50% 32.00% 0.50 22.50% Index 15.00% 18.50% Risk-free 1.25% Write the solution in Section 2 of the excel and answer the following questions as well: Which fund(s) outperform the benchmark (index)? Which portfolio offers the highest compensation for risk? . Which fund has the most consistent performance over time

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