Suppose that Victor and Davis are investing in a portfolio with the given weights in the table on the risk-free asset and market portfolio (M)...

Question C3 Suppose that Victor and Doris are investing in a portfolio with the given the weights in the table on the risk-free asset and the market portfolio (M). Doris' Portfolio Weights 0.8 0.2 Victor's Portfolio Weights 0.4 0.6 Market Portfolio (M) Risk free asset The risk-free rate is 8%. The expected return and the risk associated with the Market Portfolio (M) are 12% and 15%, respectively. (a) Calculate the expected return and the risk associated with each portfolio. (4 marks) (b) Calculate the beta of each portfolio. (6 marks) Using the answers to parts (a) and (b) answer the following questions. (c) Compute the Sharpe's performance measure for each portfolio and for the Market. (3 marks) (d) Compute the Treynor's performance measure for each portfolio and for the Market. (3 marks) (e) Calculate the Jensen's performance measure for each portfolio and for the Market. (3 marks) (0) Based on your findings in parts (c), (d), and (e), evaluate the performance of the three portfolios during the year just ended. (6 marks)