You are evaluating Atlas fund.

The following data, relating to the performance of the Atlas Fund and the Market Portfolio over a recent year, are available.

Measure	Atlas Fund	Market Portfolio
Average return	16%	14%
Standard deviation of returns	24%	16%
Beta	1.15	1.00
Residual standard deviation	1.8%	0%

The risk-free rate during the observed year was 4%.

a. Calculate the following measures of performance evaluation for the Atlas Fund and the Market Portfolio over the observation year.

• The Sharpe ratio
• The Treynor ratio
• The Jensen alpha
• The information ratio.

b. On the basis of your calculations, would you prefer to invest in the Atlas Fund or the Market portfolio? State why.