You are evaluating two investment alternatives. One is a passive market portfolio with an expected

return of $10\%$ and a standard deviation of $16\%.$ The other is a fund that is actively managed by your

broker. This fund has an expected return of $15\%,$ beta of $2,$ and a standard deviation of $20\%.$ The risk$-$

free rate is currently $7\%.$ Answer the questions below based on this information.

a$.$ Calculate the Sharpe ratio of the actively managed fund.

b$.$ Calculate the Treynor ratio of the actively managed fund.

c$.$ Calculate the Sharpe ratio and Treynor ratio of the market portfolio. Is the actively

managed fund more attractive based on the two ratios?

d$.$ What is the Jensen$$s alpha and information ratio of the actively managed fund