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 $19\%.$ Standard deviation of the market portfolio is $17\%.$ The average returns, residual standard deviations, and betas for the three

funds are given below.

Sharpe ratio for each fund. $[4$ marks$]$

Treynor ratio for each fund. $[4$ marks$]$

Jensen's alpha for each fund. $[4$ marks$]$

Information ratio measure. $[4$ marks$]$

Differentiate between active and passive investment styles with respect to the Information Ratio measure. $[4$ marks$]$