Here are 5 mutual funds over the most recent 5-year period. We assume that the average annual rate of return on the market was 13% and the standard deviation was 5%. The average rate of return on 1 year treasury bills was 3%. Below is a table that summarizes each portfolio

Portfolio	Average annual rate of return (%)	standard deviation (%)	beta
ABC	14	6	1.5
DEF	12	4	0.5
GHI	16	8	1.0
JKL	10	6	0.5
MNO	20	10	2.0

Calculate per stock:

(1) Jensen's alpha (2) Sharpe Ratio (3) M² (4) Treynor Measure (5) T²

(6) Did each portolio underperform, equal, or outperform the market index? By which measures did the fund(s) outperform the market?

(7) Which is the best choice per circumstance: (a) This will be the only risky asset to be held. (b) stock will be mixed with treasury bills (c) this is one of the many stocks that investor is analyzing to form an actively managed stock portfolio