Below shows the US$ monthly returns of portfolio investment in various countries by your company:
|
Country
|
Risk-free return
|
Average Return
|
Standard
|
Beta
|
|
|
(%)
|
(%)
|
Deviation (%)
|
|
|
Singapore
|
0.40
|
0.90
|
6.00
|
1.00
|
|
Hong Kong
|
0.40
|
1.25
|
6.75
|
1.20
|
|
Japan
|
0.40
|
0.75
|
4.50
|
0.90
|
|
China
|
0.40
|
1.45
|
6.80
|
1.35
|
|
United States
|
0.40
|
1.00
|
5.50
|
0.9
|
1) Calculate and rank the country portfolios by Treynor Measure
2) Calculate and rank the country portfolios by Sharpe Measure
3) Being a financial controller who is able to determine a global beta for your company's portfolio and holds a portfolio that is well-diversified with international investments, which performance measure is more appropriate, the Sharpe Measure or the Treynor Measure? Explain why.