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Suppose the returns and corresponding beta values for two assets ( \( A \) and...

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Finance

image Suppose the returns and corresponding beta values for two assets ( \( A \) and \( B \) ) were as indicated in this figure: 1. Compute the Treynor index for \( A \) and \( B \). Interpret the results. 2. Compute the Jensen Index for \( A \) and \( B \). Interpret the results. 3. Suppose one manager had selected a portfolio represented by \( A \) and another manager had selected a portfolio represented by \( B \). Would you feel confident in evaluating the manager's relative performance with the Treynor or Jensen results? Explain

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