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Consider two portfolio with market model regression parameters from the table below (regressions were estimated using excess returns as a dependent variable). Market risk premium Er_m – r_f was 8%. Portfolio A Portfolio B Estimated market model 1%+1.2(r_m-r_f) 2%+0.8(r_m-r_f) R-squared 0.75 0.25 Standard deviation of portfolio return 21.6% 24.9% A) Report the following performance measures: -Alpha -Sharpe ratio -Treynor ratio - M-squared B) Which portfolio is "best" if: - This is the only risky asset investor intends to have? --- Portfolios are evaluated to determine their relative contribution to the overall performance of a well diversified portfolio with other subportfolios?

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