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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and

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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are glven below. Residual Average Standard Return Deviation Beta Pund A 204 4.00 Tund 211 1.25 1.0 Pund c 239 1.200 1.2 0.8 The fund with the highest Information ratio measure is Multiple Choice Fund The fund with the highest Information ratio measure is Multiple Choice Fund C O Funds A and B pled for highest). Fund A Fund B

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