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NFORMATION: Portfolio Market Average return 18% 14% Standard deviation 20% 24% Beta 0.6 1.0 The risk-free rate is 7%. You are required to calculate the

NFORMATION: Portfolio Market Average return 18% 14% Standard deviation 20% 24% Beta 0.6 1.0 The risk-free rate is 7%. You are required to calculate the following: 1.1 Sharpe ratio (4) 1.2 Treynor ratio (4) 1.3 CAPM (6) 1.4 Explain the relationship between risk and returns. (2) 1.5 Discuss the definition of systematic risk (4)

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