Therisk-free rate is currently 7.5%. Use the data in the accompanying table for the Fiofamily's portfolio and the market portfolio during the year just ended to answer the questions that follow.(Click on the icon located on thetop-right corner of the data table below in order to copy its contents into aspreadsheet.)

Data Item Fios' Portfolio Market Portfolio

Rate of return 13.1% 10.8%

Standard deviation of return 12.8% 8.5%

Beta 0.81 1.00

a. CalculateSharpe's measure for the portfolio and the market. Compare the twomeasures, and assess the performance of theFios' portfolio during the year just ended.

b. CalculateTreynor's measure for the portfolio and the market. Compare thetwo, and assess the performance of theFios' portfolio during the year just ended.

c. CalculateJensen's measure(Jensen's alpha). Use it to assess the performance of theFios' portfolio during the year just ended.

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