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The following portfolios are being considered for investment. During the period under consideration, RFR = 0.07. Portfolio Return Beta Oi P 0.13 1.00 0.05 Q
The following portfolios are being considered for investment. During the period under consideration, RFR = 0.07. Portfolio Return Beta Oi P 0.13 1.00 0.05 Q 0.19 1.30 0.11 R 0.09 0.70 0.03 S 0.15 1.10 0.06 Market 0.11 1.00 0.04 a. Compute the Sharpe measure for each portfolio and the market portfolio. Round your answers to three decimal places. Portfolio Sharpe measure P Q R S Market b. Compute the Treynor measure for each portfolio and the market portfolio. Round your answers to three decimal places. Portfolio Treynor measure P Q R S Market c. Rank the portfolios using each measure, explaining the cause for any differences you find in the rankings. Portfolio Rank (Sharpe measure) Rank (Treynor measure) -Select- -Select- Q -Select- -Select- R -Select- -Select- S -Select- -Select- Market -Select- -Select- -Select- is poorly diversified since it has a high ranking based on the -Select- but a much lower ranking with the -Select
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