A plan sponsor is considering two U.K. investment managers, Birmingham Asset Management and Figleaf Equities, for the same mandate. Birmingham will produce on average an annual value-added return of...

A plan sponsor is considering two U.K. investment managers, Birmingham Asset Management and Figleaf Equities, for the same mandate. Birmingham will produce on average an annual value-added return of 1.7 percent over the benchmark, with variability of the excess returns of 2.20 percent. Figleaf is expected to produce a higher annual value-added return of 4,1 percent, but with variability of excess returns around 11 percent.
Calculate the information ratio for each and explain which manager offers the best record of performance.