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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The average risk-free return during the sample period is 3%

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You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The average risk-free return during the sample period is 3% p.a., and the average return on the market portfolio is 12% p.a. The average return, beta and residual standard deviation for the three funds are given below. Fund A B Annual Average Return 16% 19% Beta 0.65 0.85 Residual standard deviation 5.20% 6.40% 8.60% 22% 1.10 The fund with the highest information ratio measure is O a. Funds A and B (tied for highest). O b. Funds A and C (tied for highest). O c. Fund C. d. Fund A. O e. Fund B. Clear my choice

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