3. (Portfolio evaluation) Please evaluate portfolio a and b with sharp ratio, alpha, Treynor ratio as well as appraisal ratio using the following information. (10%) 1) Fill blanks of the following table. (4%) 2) Analyze that which asset is better to be included into a large investment fund? (3%) 3) Which manager's performance is less likely due to good luck? (3%) current excess equity Standard Asset alpha Beta return premium Deviation a -0.02 0.0800 0.2 0.03 1.2 b 0.02 0.073 0.15 0.04 0.8 a b Sharp Alpha Treynor Appraisal ratio r=+Brr)+e, Sharp Treynor Appraisal Erp-rf Erp-rf Bp O = e 0.05 0.1 ap e 3. (Portfolio evaluation) Please evaluate portfolio a and b with sharp ratio, alpha, Treynor ratio as well as appraisal ratio using the following information. (10%) 1) Fill blanks of the following table. (4%) 2) Analyze that which asset is better to be included into a large investment fund? (3%) 3) Which manager's performance is less likely due to good luck? (3%) current excess equity Standard Asset alpha Beta return premium Deviation a -0.02 0.0800 0.2 0.03 1.2 b 0.02 0.073 0.15 0.04 0.8 a b Sharp Alpha Treynor Appraisal ratio r=+Brr)+e, Sharp Treynor Appraisal Erp-rf Erp-rf Bp O = e 0.05 0.1 ap e