During the year just ended, Anna Schultz's portfolio, which has a beta of 0.96, earned a return of 8.7 %. The risk-free rate is currently 4.2 %, and the return on the market portfolio during the year just ended was 8.9 %.

a.Calculate Treynor's measure for Anna's portfolio for the year just ended.

b.Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.27%. Which portfolio performed better? Explain.

c.Calculate Treynor's measure for the market portfolio for the year just ended.

d.Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.

Questions:

a. The Treynor's measure for Anna's portfolio is (blank)% ?

b. Anna's portfolio (underperformed or overperformed) Stacy's with a TM of (4.69% or 1.27%)

c. The Treynor's measure for the market portfolio is (blank %) ?

d. The market (underperformed or overperformed) Anna's portfolio; its TM was (blank %) compared to (blank%) from her portfolio