You want to evaluate two mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 5.00%, and the average return on the market portfolio is 17.00%. The average returns, residual standard deviations, and betas for the three funds are given below.
Average Return
Residual Standard Deviation
Standard Deviation
Beta
Fund A
17%
3.75%
28%
0.90
Fund B
21%
1.25%
27%
1.00
What is Fund A's Sharpe Ratio? [ Select ] ["0.43", "0.56", "0.61", "0.13", "0.32"]
What is Fund A's Information Ratio? [ Select ] ["-0.88", "0.13", "0.04", "0.43", "0.32"]