The market risk premium is 6% and the risk free rate is 3%. An investor's existing portfolio of stocks has a beta of +1 and an expected return of +9%. The investor constructs a new portfolio of gold stocks which have a beta of -1 and an expected return of -1%,. The investor allocates 95% to her existing portfolio, and 5% to the gold stock portfolio Calculate the investor's Treynor measure before and after the allocation to the gold stock portfolio and explain why the Treynor measure increases, despite the fact the gold stocks have a negative expected return (3 marks) Enter your answer to 3 decimal places eg if your answer is 04579 enter as 0.458