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B6. You are on the board of trustees for The University of Melbournes endowment fund. You currently have several investment managers working for you and

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B6. You are on the board of trustees for The University of Melbournes endowment fund. You currently have several investment managers working for you and each of them are investing in well diversified portfolios. Suppose we live in an economy where the CAPM holds. Which measure, the Sharpe Ratio, Treynor Ratio, or Jensen's alpha, is best to gauge the performance of each of these managers [1 mark] and why [3 marks]

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