Niki Malone's portfolio earned a return of 11.8% during the year just ended. The portfolio's standard deviation of return was 14.1%. The risk- free rate is currently 6.2%. During the year, the return on the market portfolio was 9.0% and its standard deviation was 9.4%.

1. Calculate Sharp's measure for Niki Malone's portfolio for the year just ended.
2. Compare the performance of Niki's portfolio found in part a with that of Hector Smith's portfolio, which has a Sharp's measure of 0.43. Which portfolio per- formed better? Why?
3. Calculate Sharp's measure for the market portfolio for the year just ended.
4. Use your findings in parts A and C to discuss the performance of Niki's portfolio relative to the market during the year just ended.