Chee Chew's portfolio has a beta of 1.25 and earned a return of 13.5% during the year just ended. The risk-free rate is currently 4.3%.The return on the market portfolio during the year just ended was 10.6%.

a.Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended.

b.Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of negative 0.23.Which portfolio performed better? Explain.

c.Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.