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Question 2 a) Under the assumption that the risk free-rate is constant at 6% for one year from now, calculate the Sharpe ratio for a portfolio of shares where the risk premium of the portfolio over the one year future period is estimated at 14% and the monthly variance of the portfolio excess return is 5%. [20 marks] b) i) Critically compare the CAPM and the Single Index Model for estimating the return on a share. You may also use their graphical diagrams in your discussion. (word limit: maximum 300 words) [20 marks] ii) Are these two models the same? Explain your answer (word limit: maximum 100 words) [10 marks]