1. What is the Treynor ratio and Jensen's alpha of a portfolio comprised of 40 percent portfolio A, 25 percent portfolio B, and 35 percent portfolio C? ( 10Mark)

The risk-free rate is 2.9 percent and the market risk premium is 8.6 percent.

Asset Weight Avg Return Std Dev Beta

A 40% 15.30% 17.20% 1.56

B 25% 10.50% 9.80% 0.95

C 35% 13.30% 14.10% 1.25