Kelli Blakely is a portfolio manager for the Miranda Fund(Miranda), a core large-cap equity fund. The market proxy andbenchmark for performance measurement purposes is the S&P 500.Although the Miranda portfolio generally mirrors the asset classand sector weightings of the S&P, Blakely is allowed asignificant amount of leeway in managing the fund. Her portfolioholds only stocks found in the S&P 500 and cash.

Blakely was able to produce exceptional returns last year (asoutlined in the table below) through her market-timing and securityselection skills. At the outset of the year, she became extremelyconcerned that the combination of a weak economy and geopoliticaluncertainties would negatively impact the market. Taking a boldstep, she changed her market allocation. For the entire year herasset class exposures averaged 50% in stocks and 50% in cash. TheS&P’s allocation between stocks and cash during the period wasa constant 96% and 4%, respectively. The risk-free rate of returnwas 3%.

One-Year Trailing Returns
	Miranda Fund			S&P 500
Return		9.5	%		?21.8	%
Standard deviation		36.0	%		41	%
Beta		1.30			1.00

a. What are the Sharpe ratios for theMiranda Fund and the S&P 500? (Negative values shouldbe indicated by a minus sign. Do not roundintermediate calculations. Round your answers to 4 decimalplaces.)

	Sharpe Ratio
Miranda fund
S&P 500

b. What is the M²measure for Miranda? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

M² Measure             %

c. What is the Treynor measure for theMiranda Fund and the S&P 500? (Negative values shouldbe indicated by a minus sign. Do not round intermediatecalculations. Round your answers to 4 decimal places.)

	Treynor Measure
Miranda
S&P 500

d. What is the Jensen measure for theMiranda Fund? (Do not round intermediate calculations.Round your answers to 4 decimal places.)

Jensen measure