The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Fio familys portfolio and the market portfolio during the year just ended to answer the questions that follow.

Data item/ Fios portfolio/ Market portfolio

rate of return / 12.8/ 11.2

standard deviation of return / 13.5/ 9.6

Beta /1.10/ 1.00

Calculate Sharpes measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios portfolio during the year just ended.

Calculate Treynors measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios portfolio during the year just ended.

Calculate Jensens measure (Jensens alpha). Use it to assess the performance of the Fios portfolio during the year just ended.

On the basis of your findings in parts a, b, and c, assess the performance of the Fios portfolio during the year just ended.