Question 1: 20 marks a) The following data are available relating to the performance of Mocho Stock and the market portfolio: Mocho Average return 16% Standard deviations of returns 26% Beta 1.15 Residual standard deviation Market Portfolio 12% 22% 1.00 1% 0% (5 marks) The risk-free rate during the sample period was 4%. 1) Calculate Treynor's measure of performance for Mocho Stock fi) Calculate Sharpe's measure of performance for Mocho Stock b) Briefly explain how do you rebalance your portfolio (5 marks) (10 marks)