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You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation. The current risk-free rate is 1% and the

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You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation. The current risk-free rate is 1% and the expected return of the market is 10%. The average return, residual standard deviation, and beta of these three institutional funds are reported below: MSF DFA FIF Return FIF (worst) and DFA (best) MSF (worst) and FIF (best) DFA (worst) and FIF (best) MSF (worst) and DFA (best) 10% 9% 13% Residual Standard deviation 25% 14% 18% Beta 1.20 0.55 1.30 Please identify below the correct combination of the worst performing fund and the best performing fund based on the Jensen's alpha measure of performance evaluation.

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