12. Kelli Blakely is a portfolio manager for the Miranda Fund (Miranda), a core large-cap equity fund. The market proxy and benchmark for performance measurement purposes is the S&P 500. Although the Miranda portfolio generally mirrors the asset class and sector weightings of the S&P, Blakely is allowed a significant amount of leeway in managing the fund. Her portfolio holds only stocks found in the S&P 500 and cash.

Blakely was able to produce exceptional returns last year (as outlined in the table below) through her market timing and security selection skills. At the outset of the year, she became extremely concerned that the combination of a weak economy and geopolitical uncertainties would negatively impact the market. Taking a bold step, she changed her market allocation. For the entire year her asset class exposures averaged 50% in stocks and 50% in cash. The S&Ps allocation between stocks and cash during period was a constant 97% and 3%, respectively. The risk-free rate of return was 2%.

One-Year Trailing Returns
	Miranda Fund	S&P 500
Return	10.2%	22.5%
Standard deviation	37%	44%
Beta	1.10	1.00

a.	What are the Sharpe ratios for the Miranda Fund and the S&P 500? (Do not round intermediate calculations. Enter answer values in decimals. Negative amount should be indicated by a minus sign. Round your answer to 4 decimal places.)

Sharpe ratio for the Miranda Fund _________??
Sharpe ratio for the S&P 500 _________??

b.	What are the M 2 measures for Miranda? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

M 2 measure for Miranda

_____________ %??

c.	What is the Treynor measure for the Miranda Fund and the S&P 500? (Do not round intermediate calculations. Enter answer values in decimals. Round your answer to 4 decimal places.

Treynor measure for the Miranda Fund __________??
Treynor measure for the S&P 500 ___________??

d.	What is the Jensen measure for the Miranda Fund? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Jensen measure for the Miranda Fund

__________ %??