You Want to Evaluate Three Mutual Funds Using the Information

You want to evaluate three mutual funds using the information ratio measure for performance evaluation.The risk-free return during the sample period is 6%,and the average return on the market portfolio is 19%.The average returns,residual standard deviations,and betas for the three funds are given below. $$\begin{array} { | l | l | l | l | } \hline & \text { Average Return } & \text { Residual Standard Deviation } & \text { Beta } \\\hline \text { Fund A } & 20 \% & 4.00 \% & 0.8 \\\hline \text { Fund B } & 21 \% & 1.25 \% & 1.0 \\\hline \text { Fund C } & 23 \% & 1.20 \% & 1.2 \\\hline\end{array}$$ The fund with the highest information ratio measure is __________.

A) Fund A
B) Fund B
C) Fund C
D) Funds A and B are tied for highest
E) Funds A and C are tied for highest