QUESTION 35

1. The North Equity Fund has a beta of 1.67 and a standard deviation of 22.6%. It has returned 13.8% during the past year when the return on one-year treasury bills has been 3.6%. The Sharpe Ratio of the North Equity Fund is closest to:

   		a. 0.45.
   		b. 0.61.
   		c. 6.11.
   		d. 8.26.

QUESTION 36

1. The Western Fund generated a return of 10.4% over the last year. The relevant market portfolio had a return of 9.6% and the risk-free return was 2.1%. Western Fund's beta is 1.28. The Jensen's alpha for the fund is closest to:

   		a. -1.3.
   		b. -0.2.
   		c. +0.8.
   		d. +1.7.