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Consider the following data for a particular sample period: Risk free rate R f is 8% and correlation between P and M P,M = 0.75.

Consider the following data for a particular sample period:

Risk free rate R_f is 8% and correlation between P and M _P,M = 0.75. Answer the following questions

(5 points) Using the CAPM model, what is the of P? What is Jensens alpha and Treynor RVol for P?
(5 points) What is Modiglianis M² for P?
(5 points) Suppose during this period, you invested all your wealth on Portfolio P. Which measure do you think it is more appropriate to evaluate the performance of portfolio P?

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