3(a) Suppose the risk-free rate is 2%, the market return is 5% and the market risk that is associated with your portfolio is 1.15; what is a reasonable return for your portfolio investment? (YOU MUST SHOW YOUR WORK) (5 Points)

(b) Using the Sharpe Index and information from Question 2, evaluate the performances of Portfolios A and B (10 Points). You may include the Treynor Index for an additional point.

Portfolio A	10%	5%	6%	4%	3%	2%
Portfolio B	5%	6%	7%	2%	5%	6%