Answer: Neither I or II

## Explanation ### Statement I Analysis: Information Ratio To calculate the Information Ratio (IR), we need: - Portfolio return (not provided) - Benchmark return = 12.36% - Tracking error = 7.21% Since the portfolio return is not given, we cannot calculate the Information Ratio. Therefore, Statement I cannot be verified and is likely incorrect. ### Statement II Analysis: Sharpe vs Sortino vs Information Ratio - **Sharpe Ratio** = (Portfolio Return - Risk-free Rate) / Standard Deviation - **Sortino Ratio** = (Portfolio Return - Risk-free Rate) / Semi-standard Deviation - **Information Ratio** = (Portfolio Return - Benchmark Return) / Tracking Error Given: - Standard deviation = 16.90% - Semi-standard deviation = 13.72% - Tracking error = 7.21% - Risk-free rate = 5.35% Since the portfolio return is not provided, we cannot calculate the exact values. However, we can analyze the relative magnitudes: - The denominator for Sharpe (16.90%) > Sortino (13.72%), so Sharpe ratio < Sortino ratio - The denominator for Information Ratio (7.21%) is smaller than both, but we don't know the numerator (excess return over benchmark) Without the portfolio return, we cannot definitively determine if Sharpe ratio > Information ratio. Therefore, Statement II cannot be verified. ### Conclusion Both statements cannot be verified with the given information, so the correct answer is **D. Neither I or II**.

Author: LeetQuiz Editorial Team