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Please show working out/theory The table below gives the after-fee performance of various assets: X-fund 10% 10% Asset Y-fund 5% 4% An investor who is

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Please show working out/theory

The table below gives the after-fee performance of various assets: X-fund 10% 10% Asset Y-fund 5% 4% An investor who is going to combine an active investment in one of the stock alpha funds with a passive investment in the market portfolio will choose: Select one: A. The Y-fund because it has the higher information ratio B. The Y-fund because it has the lower residual standard deviation. C. The X-fund because it has the higher information ratio. D. The X-fund because it has the higher alpha. E. There is no sufficient information

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