To determine the relative performance of two investment funds, the information ratio (IR) is a widely used measure. The information ratio is calculated as the difference between the portfolio returns and the benchmark returns, divided by the tracking error. The formula for the information ratio is:

[ IR = \frac{(R_p - R_b)}{\sigma_d} ]

where:

• ( R_p ) is the return of the portfolio.
• ( R_b ) is the return of the benchmark.
• ( \sigma_d ) is the standard deviation of the difference between the portfolio returns and the benchmark returns (also known as the tracking error).

Given the following performance data for two funds (Fund A and Fund B) relative to their benchmark:

Fund	Portfolio Return ((R_p))	Benchmark Return ((R_b))	Tracking Error ((\sigma_d))
Fund A	8%	5%	6%
Fund B	10%	7%	5%

Calculate the information ratios for both funds and analyze these ratios to derive conclusions about their relative performance versus the benchmark._