Manager A generated a return of 15% with a standard deviation of 8% and a beta of 1.2. Manager B generated a return of 12% with a standard deviation of 5% and a beta of 0.9. The risk-free rate is 5%.
i. Calculate the Sharpe and Treynor Ratios for both managers.
ii. Identify which manager had the better risk-adjusted return as a stand-alone portfolio and which one had a better risk-adjusted return as a part of a broader market portfolio. Get Finance Help Today