Consider the following historical performance data for two different portfolios, the standard and Poor's 500, and the 90 -day T-Bill.

a. Calculate the Fama overall performance measure for both funds.

b. what is the return to risk for both funds?

c. For both funds, compute the measures of (1) selectivity, (2) diversification, and (3) net selectivity.

d. Explain the meaning of the net selectivity measure and how it hels you evaluate in-vestor performance. Which fund has the best performance.

R? Investment Vehicle Fund. 1 Fund 2 S&P 500 90-day T-bill Average Rate of Return 26.40% 13.22 15.71 6.20 Standard Deviation 20.67% 14.20 13.25 0.50 Beta 1.351 0.905 0.751 0.713