Question: please answer 2 and 3 2. What is the difference between Sharpe ratio and alpha? When an investor has a well- diversified portfolio of many

please answer 2 and 3 please answer 2 and 3 2. What is the difference between Sharpe

2. What is the difference between Sharpe ratio and alpha? When an investor has a well- diversified portfolio of many assets, should she use Sharpe ratio or alpha to assess the performance of an asset she has? 3. Suppose CAPM holds and the required return on Stock X is higher than the required return on Stock Y (ie, rx >ry). Why is it possible that ox

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