Suppose the returns and corresponding beta values for two assets (A and B) and the market (M) are as indicated in the accompanying figure as per below: T B .15 .10 TF = .050 1 .5 1.5 Beta (i) Compute the Treynor Index for A and B. Interpret the results. [2 marks] (ii) Compute the Jensen index for A and B. Interpret the results. [2 marks] (iii) Suppose one manager had selected a portfolio represented by A and another manager had selected a portfolio represented by B. Would you feel confident in evaluating the managers' relative performance with the Treynor or Jensen results? Explain. [2 marks] Sample mean return