A)Mom and Pop had a portfolio of long-term bonds that they purchased many years ago.The bonds pay 12% interest annually, and the face value is $100,000.If Mom and Pop are in the 25% tax bracket, what is their annual after-tax HPR on this investment? (Assume it trades at par.)

B) Your portfolio has a beta equal to 1.3.It returned 12% last year.The market returned 10%; the risk-free rate is 2%.Calculate Treynor'smeasure for your portfolio and the market.Did you earn a better return than the market given the risk you took?