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You want to evaluate three institutional investment funds using the information ratio measure of performance...

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You want to evaluate three institutional investment funds using the information ratio measure of performance evaluation. The current risk-free rate is 1% and the expected return of the market is 10%. The average return, residual standard deviation, and beta of these three institutional funds are reported below: Return Residual Standard deviation Beta MSF 25% 1.20 10% 9% DFA 14% 0.55 FIF 13% 18% 1.30 Please identify below the correct combination of the worst performing fund and the best performing fund based on the Jensen's alpha measure of performance evaluation. ODFA (worst) and FIF (best) O FIF (worst) and DFA (best) O MSF (worst) and FIF (best) MSF (worst) and DFA (best)

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