How do i get 0.2857?

You are interested in understanding if your portfolio beat the market on a risk adjusted basis. Your portfolio's average return is 8% and standard deviation is 35%. On the other hand, the market average return is 7% and standard deviation is 25%. If the risk free security pays returns 1.5%, what is the M measure? (7 points) = 25% Wp = 0.7143 35% r{p*} = 0.7143 * 8% + 0.2857 * 1.5% = 6.14% M2 = 6.14% 7% 0.86% = = = =