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You want to evaluate three institutional funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 4%, and

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You want to evaluate three institutional funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 4%, and the equity risk premium is 10%. The average returns, residual standard deviations, and betas for these three institutional funds are given below: Which of these funds would you invest in based on their Information Ratio (IR) measure of performance evaluation? The Invesco fund because it has the highest positive IR The Legg Mason fund because it has the highest positive IR The Lord Abbot fund because it has the highest positive IR None of them

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