es The expected rates of return and risk measures for two portfolios as well as the market index are given in the following table. The T-bill rate is currently 5%. Expected return Beta Standard deviation Portfolio A 12% 0.7 12% a. Alpha for Portfolio A a. Alpha for Portfolio B b. Which would you choose? Portfolio B 16% 1.4 31% Market Index 13% 1.0 Required: a. If you currently hold a market-index portfolio, would you choose to add either of these portfolios to your holdings? Note: Negative amount should be indicated by a minus sign. Round your answers to 1 decimal place. b. If you could invest only in T-bills and one of these portfolios, which would you choose? % % 18%

The expected rates of return and risk measures for two portfolios as well as the market index are given in the following table The T-bil rate is cutrently 5%. Required: o. If you currently hold a market-index portfolio, would you choose to add either of these portolios to your holdings? Note: Negotive omount should be indicoted by o minus sign. Round your answers to 1 decimol plece. b. If you could invest only in T-bilis and one of these portfolios, which would you choose? The expected rates of return and risk measures for two portfolios as well as the market index are given in the following table The T-bil rate is cutrently 5%. Required: o. If you currently hold a market-index portfolio, would you choose to add either of these portolios to your holdings? Note: Negotive omount should be indicoted by o minus sign. Round your answers to 1 decimol plece. b. If you could invest only in T-bilis and one of these portfolios, which would you choose