Calculate the sharpe ratio-treynor ratio

Reference no: EM13820480

You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate.

Year	Papa Fund	Mama Fund	Market	Risk-Free
2008	-12.6%	-22.6	-24.5%	1%
2009	25.4	18.5	19.5	3
2010	8.5	9.2	9.4	2
2011	15.5	8.5	7.6	4
2012	2.6	-1.2	-2.2	2

Calculate the Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, and R-squared for both funds and determine which is the best choice for your portfolio.

Reference no: EM13820480

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