Appu is about to have her end-of-year performance review (for the past year) for a portfolio she manages. This is a well-diversified portfolio, and in preparation for this meeting Appu has prepared the following information: the risk-free rate was 1.78%, the market return was 8.5%, the actual portfolio return was 10.7%, the beta was 0.78, the portfolio PE was 23.2, the return on her largest weight holding was 18.6%, the std dev of the portfolio was 11%, and the std dev of the market was 12.1%. What was Appu's risk-adjusted out-performance?

a.

insufficient information

b.

3.68

c.

1.78

d.

7.02

e.

2.20