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You would like to compare two funds you have read about in the Wall Street Journal. You download the monthly retums of the funds over

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You would like to compare two funds you have read about in the Wall Street Journal. You download the monthly retums of the funds over the last five years and compute some rudimentary statistics. The output is summarized in the table below (all numbers are annualized) Beta, R-squared, and the Standard Error of the Residuals are with respect to the S&P 500 index. Over the same time period the average return of the S&P 500 was 10.479, and the US T-Bill rate was 1.08%. Avg. Name Return Meridian Enhanced Equity Fund (MEIFX) 18.49% Baron Partners Fund (BPTRX) 15.36% Std. Dev. of Returns 29.34% 17.51% Beto 0.96 1.21 R? 0.15 Std. Err. of Residuals 27.28% 10.18% 0.67 If the answer is a percentage, round to 2 decimal places and enter without the percentage sign (od: 10.4667 would be entered as 10.479.1E the anterioides umber, round to 2 decimal places and enter as is (08, 0.963 would be entered as 0.96) a) Calentate the Alpha of the Meridian Enhanced Equity Fund. by Coleslate the Alpha of the Baron Partners Fund. o calculate the Sharpe Ratio of the Meridian Enhanced Equity Fund. d) Calculate the Sharpe Ratio of the Baron Partners Fund. c) If this find is going to be among the many that you invest in, which one should you choose? (Enter Meridian or Barom) If you are going to invest your total wealth into this tund, which one should you choose? (Enter Meridian or Barom)

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