Based on current dividend yields and expected capital gains, the expected rates of return on portfolios Aand B are 8.3% and 8.2%, respectively. The beta of A is .9, while that of B is 1.3. The T-bill rate is currently 4%, while the expected rate of return of the S&P 500 index is 8%. The standard deviation of portfolio A is 29% annually, while that of B is 50%, and that of the index is 39%.

Think about what are the appropriate performance measures to use in question a and b, and why.

a.	If you currently hold a market index portfolio, what would be the alpha for Portfolios A and B? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)

	Alpha
Portfolio A?	%
Portfolio B?	%

b-1.	If instead you could invest only in bills and one of these portfolios, calculate the sharpe measure for Portfolios A and B. (Enter your answer as a decimal rounded to 2 decimal places.)

	Sharpe Measure
Portfolio A	?
Portfolio B ?