5. The asset risk free offers a return of 4%. If the Expected return for the market portfolio is 15% with a volatility of 18% a. Would it be reasonable buy shares on asset A with a Beta of 0,75 with an expected return of 11%? Explain why b. And a share with a Beta of 1.4 with an expected return of 24%? Explain why c. And if risk free is 5% instead? 6. Explain what information the following ratios provide and calculate an example for each: a. Sharpe Ratio b. Alpha jensen c. Treynor Ratio 7. Briefly summarize the Tracking Error and its use. 8. Explain the main differences between Sharpe's Market Portfolio Theory and the CAPM 9. Calculate the Sharpe ratio for the following investments. Which one is the more attractive for you? Fund Beta S harpe ratio 9,5% 8% 16% 13% 1,3 13% 10% 1,5 19% 15% 1,2 Market 11% 6% Return 0.7 B D