The data below applies for Q33 - Q35

The following data are available for three portfolios and the market for a recent 10-year period:

Avg Annual Standard

Portfolio Return (%) Deviation Beta R^2

1 14.00 21 1.15 0.70

2 16.00 24 1.00 0.98

3 20.00 28 1.25 0.90

S&P 500 12.00 20

RF 6.00

1

Which of the portfolios above have the highest risk-adjusted return as defined by the Sharpe ratio

2-Which of the portfolios (including the market portfolio) above have the LOWEST Treynor ratio