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1 8 . Suppose that the 1 0 - year annual return for the S &P 5 0 0 ( market portfolio ) is

18. Suppose that the 10-year annual return for the S\&P 500(market portfolio) is 10\%, while the average annual return on Treasury bills (a good proxy for the risk free rate) is \(5\%\). The market beta by definition is 1. Assume you are evaluating three distinct portfolio managers with the following 10-year results:
Compute the Treynor value for each portfolio manager. Given your results, which portfolio is more preferrable and why do you think so?
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