Consider the historical returns of the following portfolios:

Year	Catan	Kandemir	Market
2012	0.11	-0.15	-0.13
2013	-0.13	0.02	-0.01
2014	0.01	0.13	0.05
2015	-0.12	0.14	0.03
2016	0.00	-0.07	0.05
2017	0.02	-0.1	-0.12
2018	-0.01	-0.05	0.12
2019	-0.08	-0.05	0.11
2020	-0.04	0.07	0.00
2021	-0.11	0.07	0.07

From 2012 to 2021, the risk-free rate was 2%.

1. Calculate the mean historical returns for the two funds and the market portfolio.

2. Calculate the return variances associated with the Catan fund, the Kandemir fund and the market portfolio.

3. Calculate the historical covariance between the returns of the Catan fund and the returns of the market portfolio.

4. Calculate the historical covariance between the returns of the Kandemir Fund and the returns of the market portfolio.

5. Calculate the historical betas of the Catan and Kandemir funds.

6. Calculate the historical Treynor ratios of the Catan and Kandemir funds. According to the Treynor ratio, which fund has the superior historical performance?

7. Explain the relative advantages and disadvantages of the Treynor ratio relative to the Sharpe ratio.