Consider the following historical performance data for two different portfolios, the Standard and Poor's 500, and the 90-day T-bill. Investment Vehicle Fund 1 Fund 2 S&P 500 90-day T-bill Average Rate of Return 26.40% 13.22 15.7 6.20 Standard Deviation 20.67% 14.20 13.25 0.50 Beta 1.351 0.905 R 0.751 0.713 (a) Calculate both the Treynor measure and the Sharpe measure for both Funds and the S&P 500. Briefly explain whether Fund 1 and Fund 2 underperformed, equaled, or outperformed the S&P 500 on a risk-adjusted basis using both the Treynor measure and the Sharpe measure. (b) Based on the performance of investments relative to the S&P 500 calculated in Part a, briefly explain the reason for the conflicting results when using the Treynor measure versus the Sharpe measure. (c) Explain, what Fama overall performance measure can add to (a) and (b).

Consider the following historical performance data for two different portfolios, the Standard and Poor's 500, and the 90-day T-bill. (a) Calculate both the Treynor measure and the Sharpe measure for both Funds and the S\&P 500. Briefly explain whether Fund 1 and Fund 2 underperformed, equaled, or outperformed the S\&P 500 on a risk-adjusted basis using both the Treynor measure and the Sharpe measure. (b) Based on the performance of investments relative to the S\&P 500 calculated in Part a, briefly explain the reason for the conflicting results when using the Treynor measure versus the Sharpe measure. (c) Explain, what Fama overall performance measure can add to (a) and (b)