True or False A market-timing strategy will increase the weight or asset allocation in treasury bonds when one forecasts that the stock market will be negative.

The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below.

What is the Treynor measure for portfolio B? What is the M2 measure for portfolio C?

Fund B C S&P 500 Avg 18% 25% 20% 15% 5% Std Dev 30% 35% 25% 20% Beta 1.05 1.3 1.2 1.0 if