You Want to Evaluate Three Mutual Funds Using the Treynor

You want to evaluate three mutual funds using the Treynor measure for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, in addition to information regarding the S&P 500 Index. $$\begin{array} { c c r r } & \begin{array} { c } \text { Average } \\\text { Return }\end{array} & \begin{array} { r } \text { Standard } \\\text { Deviation }\end{array} & \text { Beta } \\\hline \text { Fund A } & 13 \% & 10 \% & 0.5 \\\text { Fund B } & 19 \% & 20 \% & 1.0 \\\text { Fund C } & 25 \% & 30 \% & 1.5 \\\text { S\&P 500 } & 18 \% & 16 \% & 1.0\end{array}$$ The fund with the highest Treynor measure is

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

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