Question 1: 20 marks a) The following data are available relating to the performance of Mocho Stock and the market portfolio: I Mocho Market Portfolio 16% 12% Average return Standard deviations of returns Beta Residual standard deviation 26% 22% 1.15 1% 1.00 0% The risk-free rate during the sample period was 4%. i) Calculate Treynor's measure of performance for Mocho Stock ii) Calculate Sharpe's measure of performance for Mocho Stock b) Briefly explain how do you rebalance your portfolio. (5 marks) (5 marks) (10 marks)