You can get a paper on a similar topic by ordering from us
Complete Problem 22 in the Questions and Problems section of Chapter 13 (shown below). When you pick the best choice for your portfolio, defend your decision in a one-page essay following APA guidelines.
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