My answer is incorrect The following are the steps I took.

Information ratio = (fund return - market return) / residual standard deviation

Information ratio = (14% - 10%) / 4%

Information ratio = 1.00

Use the following data to answer the question regarding the performance of Guardian Stock Fund and the market portfolio. The risk-free return during the sample period was 5%. Guardian 14% Market Portfolio 10% 26% 21% Average return Standard deviation of returns Beta Residual standard deviation 1.2 1 4% 0% Calculate the information ratio measure of performance for Guardian Stock Fund. (Round your answer to 2 decimal places. Do not round intermediate calculations.) Information ratio 1.00