The following information applies to the next three questions (17-19) Given the following information of a portfolio (P) and the market (M), calculate M2 measure (adjust the standard deviation) and T2 measure (adjust beta) for the portfolio, assuming the risk-free rate is 4%. Portfolio (P) Market (M) Average return 20% 15% Beta 1.3 1.0 Standard deviation 30% 21% What is M2 measure for the portfolio? 1. 1.50% 2.0.75% 3. 0.50% 4. 0.20% 5. -0.20% Based on the information from Q17, what is T2 measure for the portfolio? 1. 1.32% 2. 0.85% 3. 0.55% 4. 0.20% 5. -0.50% Based on the answers from Q17 and Q18, do you think the portfolio outperforms the market during the specified time period? 1. No, since both M2 and T2 measures are positive. 2. No, since both M2 and T2 measures are negative. 3. Yes, since both M2 and T2 measures are negative. 4. Yes, since both M2 and T2 measures are positive. 5. Yes, since M2 measure is positive and T2 measure is negative