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2) (8 points) Suppose that the expected market return is 9%, the standard deviation of the market return is 12% and the risk-free rate is

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2) (8 points) Suppose that the expected market return is 9%, the standard deviation of the market return is 12% and the risk-free rate is 4%. Calculate the Sharpe ratio, Treynor ratio, M-squared and Jensen's alpha for a stock with an expected return of 12%, standard deviation of 16% and a market beta of 1.2

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