Fund Beta Return (percent) 12 19 Standard deviation (percent) 18 25 0.7 1.3 ABC XYZ KLCI (Market Index) 15 20 1 (a) Assuming the risk free rate is 7 percent, calculate Sharpe ratios for ABC, XYZ and KLCI. (6 marks) (b) Compare the performance of ABC and XYZ relative to market index based on answer in (a). (2 marks) (c) Assuming the risk free rate is 7 percent, calculate Treynor's ratio for ABC, XYZ and KLCI. (6 marks) (d) Contrast the performance of ABC and XYZ based on answer in (c). (2 marks) (e) State the differences between the two measurements. (2 marks) If the actual returns realised from ABC and XYZ funds are 12 and 19 percent respectively, given that the market return is 15 percent and beta is 0.7 and 1.3, calculate the expected return for both funds. (3 marks) (9) Calculate the differential return or alpha value for ABC and XYZ funds. (2 marks) (h) Comment on the alpha value of ABC and XYZ funds. (2 marks)