A portfolio manager realized an average annual return of 10%. The beta of the portfolio is 0.7 and the standard deviation of returns is 25%. The average annual return for the market index is 12% and the standard deviation of the market returns is 20%. The risk-free rate is 4%. Calculate the M2 measure for the portfolio.

Select one:

a. 3.2%

b. 1.2%

c. -3.2%

d. -1.2%