Explanation

To calculate the information ratio, we need to understand the relationship between Sharpe ratio and information ratio. However, the problem doesn't provide sufficient information to directly calculate the information ratio from the given Sharpe ratios alone.

Key Relationships:

• Sharpe Ratio = (Portfolio Return - Risk-Free Rate) / Portfolio Standard Deviation
• Information Ratio = (Portfolio Return - Benchmark Return) / Tracking Error

Without knowing the correlation between the portfolio and benchmark returns, or the specific risk characteristics, we cannot directly derive the information ratio from the Sharpe ratios.

However, given the options and typical relationships:

• The fund's Sharpe ratio (2.5) is significantly higher than the benchmark's (1.5)
• This suggests strong active management performance
• A difference of 1.0 in Sharpe ratios doesn't directly translate to the same information ratio

Based on typical portfolio relationships and the given options, 2.0 is the most reasonable estimate among the choices, representing strong active management performance consistent with the Sharpe ratio differential.