Question: A Financial analyst has been given the following return information for two portfolios (North and South), the market index and the risk-free rate. Given that

A Financial analyst has been given the following return information for two portfolios (North and South), the market index and the risk-free rate. Given that Beta for North is 0.81 and Beta for South is 0.93 calculate the Sharpe-ratio, Treynor ratio and Jensens alpha for both funds and determine which the best choice for your portfolio. Year North South Market Risk-Free 2013 -12.60% -22.60% -24.50% 1.00% 2014 25.40% 18.50% 19.50% 3.00% 2015 8.50% 9.20% 9.40% 2.00%

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