Compute the sharpe measure for the market portfolio

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Reference no: EM13923327

The following portfolios are being considered for investment. During the period under consideration, RFR = 0.07.

Portfolio	Return	Beta	σi
P	0.15	1.0	0.05
Q	0.20	1.5	0.10
R	0.10	0.6	0.03
S	0.17	1.1	0.06
Market	0.13	1.0	0.04

a. Compute the Sharpe measure for each portfolio and the market portfolio.

b. Compute the Treynor measure for each portfolio and the market portfolio.

c. Rank the portfolios using each measure, explaining the cause for any differences you find in the rankings.

Reference no: EM13923327

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