Question: Over a recent three-year period, the average annual return on a portfolio was 25 percent. The annual standard deviation for the portfolio was 30 percent

Over a recent three-year period, the average annual return on a portfolio was 25 percent. The annual standard deviation for the portfolio was 30 percent and the beta for the portfolio was 1.25. During the same period, the average return on 90-day Treasury bills was 6 percent. Calculate the Sharpe ratio and Treynor ratio for this portfolio during this three-year period.

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