Two mutual funds have the following data related to their performances.

Description	Vasco Fund	Majelan Fund
Asset under management (m)	$600	$500
Security sales over the year (m)	$480	$100
Expense ratio	1.15%	0.25%
Pre-tax return	15%	13%
Tax-adjusted return	11.5%	10.2%
Tracking Error	47.8%	4.50%
Standard deviation of returns	20%	18%
Beta	1.5	1.2

1. Which fund is likely active and which one is passive? Why?
2. Which fund is tax efficient?
3. Assume the risk-free rate is 2% and the market rate of return is 10%. Use the tax-adjusted returns given above and determine which fund performance is better by using

i) Sharpe Ratio

ii) Treynors ratio

iii) Are the two rankings the same or different? Why or why not?