Sharpe measure: PrPrf Treynor measure: PrPrf Jensen measure: rP[rf+P(rMrf)] Use the following to answer questions 1-3: The average returns, standard deviations and betas for three funds are given below along with data for the S\&P 500 index. The risk-free return during the sample period is 6%. 1.You wish to evaluate the three mutual funds using the Sharpe measure for performance evaluation. The fund with the highest Sharpe measure of performance is A) Fund A (B) Fund B C) Fund C D) indeterminable 2.You wish to evaluate the three mutual funds using the Treynor measure for performance evaluation. The fund with the highest Treynor measure of performance is A) Fund A (B)) Fund B C) Fund C D) indeterminable 3.You wish to evaluate the three mutual funds using the Jensen measure for performance evaluation. The fund with the lowest Jensen measure of performance is A) Fund A Jensen alpha =Rp{Rf+Ba(RmRf)} (B) Fund B FundA=13.6%{6%+1.1(12%6%)}=1% C) Fund C D) indeterminable Fund B=13.1%{6%+1(12%6%)}=1.10% Fund C=12.4%{6%+1.3(12%6%)}=1.40% 4. Explain how would you evaluate a fund manager's stock picking and market timing skills. Use graphs if necessary