Based on current dividend yields and expected capital gains, the expected rates of return on portfolios...

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Finance

Based on current dividend yields and expected capital gains, theexpected rates of return on portfolios A and Bare 11% and 14%, respectively. The beta of A is .8, whilethat of B is 1.5. The T-bill rate is currently 6%, whilethe expected rate of return of the S&P 500 index is 12%. Thestandard deviation of portfolio A is 10% annually, whilethat of B is 31%, and that of the index is 20%.
a. If you currently hold a market indexportfolio, what would be the alpha for Portfolios A andB? (Negative values should be indicated by a minussign. Do not round intermediate calculations. Round your answers to1 decimal place.)
Alpha
Portfolio A %
Portfolio B %
b-1. If instead you could invest onlyin bills and one of these portfolios, calculate the sharpemeasure for Portfolios A and B. (Roundyour answers to 2 decimal places.)
Sharpe Measure
Portfolio A
Portfolio B
b-2. Which portfolio would you choose?
Portfolio A
Portfolio B

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Based on current dividend yields and expected capital gains, theexpected rates of return on portfolios A and Bare 11% and 14%, respectively. The beta of A is .8, whilethat of B is 1.5. The T-bill rate is currently 6%, whilethe expected rate of return of the S&P 500 index is 12%. Thestandard deviation of portfolio A is 10% annually, whilethat of B is 31%, and that of the index is 20%.a. If you currently hold a market indexportfolio, what would be the alpha for Portfolios A andB? (Negative values should be indicated by a minussign. Do not round intermediate calculations. Round your answers to1 decimal place.)AlphaPortfolio A%Portfolio B%b-1. If instead you could invest onlyin bills and one of these portfolios, calculate the sharpemeasure for Portfolios A and B. (Roundyour answers to 2 decimal places.)Sharpe MeasurePortfolio APortfolio Bb-2. Which portfolio would you choose?Portfolio APortfolio B