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An analyst wants to evaluate Portfolio x , consisting entirely of U . S . common stock, using both the Treynor and Sharpe measures of
An analyst wants to evaluate Portfolio consisting entirely of US common stock,
using both the Treynor and Sharpe measures of portfolio performance. The following
table provides the average annual rate of return for Portfolio the market portfolio
as measured by the Standard and Poor's Index and US Treasure bills Tbills
during the past eight years.
Calculate the Treynor measure for both Portfolio
Calculate the Sharpe measure for both Portfolio X
Calculate the Treynor measure for the S &P
Calculate the Sharpe measure for the S&P
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