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Question 4: (20 Marks) There are given Portfolios of White, Black and Grey based on...

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Question 4: (20 Marks) There are given Portfolios of White, Black and Grey based on the following data. Note that Mand F stand for the market portfolio and risk free rate, respectively: Rp | Portfolio White 10% 30% 0.75 Black 15 25 1 Grey 20 40 1.5 M 15 15 1 F 0 0 1. Compute Sharpe Ratios (4 points) and Jensen's Alphas (8 points) for Portfolios White, Black and Grey based on the following data. 2. Because the performance rankings can be substantially different, which performance measure should we use? (5 points) 3. Rank the Portfolios based on that measure from the best performer to the least performer. (3 points)

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