1. Given the following values, compute the Sharpe, Treynor, and Sortino ratios. Average return=9%, risk-free rate=2%, beta=1.1, standard deviation=21%, downside deviation=14%.
2. Given the following values, compute the Sharpe, Treynor, and Sortino ratios. Average return=11%, risk-free rate=1%, beta=1.3, standard deviation=24%, downside deviation=12%.
3. Unlevered mean and standard deviation: 8%, 15%.
If the borrowing rate is 4%, what is the mean and standard deviation of a portfolio where the investor has $15,000 equity and borrows $10,000 for a total investment of $25,000?
4. Unlevered mean and standard deviation: 12%, 26%.
If the borrowing rate is 3%, what is the mean and standard deviation of a portfolio where the investor has $225,000 equity and borrows $175,000 for a total investment of $400,000?