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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free retum during the sample period is 6%, and

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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free retum during the sample period is 6%, and the average return on the market portfolio is 199. The average returns, residual standard deviations, and betas for the three finds are given below. Beta and A Average Return Residual standard Deviatlon 30 1.001 215 1.25 235 1201 0. 1.0 1. and The found with the highest information ratio meature is Fund Fund Funds A and B (tied for highest). Fund A

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