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You currently hold a portfolio that has SPY ETF in it (SPY is an Exchange traded Fund that follows S&P 500 performance and therefore approximates

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You currently hold a portfolio that has SPY ETF in it (SPY is an Exchange traded Fund that follows S&P 500 performance and therefore approximates the Market). You are considering adding ORCL stock to it. Table below summarizes historical data analysis of the SPY, ORCL, and portfolio of SPY+ ORCL performance. It also has regression analysis summary information. Use this table to answer next 7 questions: Portfolio of SPY ORCL Portfolio of (SPY+ORCL) Average Variance St. Dev. 0.12% 0.000030 0.55% 0.18% 0.000117 1.08% 0.13% 0.000034 0.58% Rf= 0.05% Intercept Beta 0.0005 1.032 0.0001 1.006 1 ST.Dev. (el) Var (el) 0.92% 0.000085 0.16% 0.000003 R (CAPM Predicted) Jehnsen alpha Treynor Index Sharpe Ratio 0.0007 0.1272 0.0013 0.1204 0.0008 0.1379 16. Did you get consistent performance results from the two risk measures, Treynor and Sharpe, and why? A. Yes, both measure Return for the risk taken and give consistent performance ranking results B. Yes, good performance is a good performance no matter what C. No, results are not consistent because Treynor Index measure was developed later than Sharpe Ratio measure D. No, results are not consistent because Treynor and Sharpe use different types of risk measures for evaluation

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