The following data are available relating to the performance of a mutual fund and the market portfolio:

	Mutual Fund		Market Portfolio
Average return	20	%		11	%
Standard deviations of returns	44	%		19	%
Beta	1.6			1.0
Residual standard deviation	2.0	%		0.0	%

The risk-free return during the sample period was 3%.

Calculate the information ratio for the mutual fund.

Multiple Choice

• 0.5

• 1.33

• 2.1

• 1.3

• 2.8