Kelli Blakely is a portfolio manager for the Miranda Fund

(Miranda), a core large-cap equity fund. The market proxy and

benchmark for performance measurement purposes is the S&P 500.

Although the Miranda portfolio generally mirrors the asset class

and sector weightings of the S&P, Blakely is allowed a

significant amount of leeway in managing the fund. Her portfolio

holds only stocks found in the S&P 500 and cash.

    Blakely was able to produce exceptional

returns last year (as outlined in the table below) through her

market-timing and security selection skills. At the outset of the

year, she became extremely concerned that the combination of a weak

economy and geopolitical uncertainties would negatively impact the

market. Taking a bold step, she changed her market allocation. For

the entire year her asset class exposures averaged 50% in stocks

and 50% in cash. The S&PAc??cs allocation between stocks and cash

during the period was a constant 95% and 5%, respectively. The

risk-free rate of return was 3%.

One-Year Trailing Returns

Miranda Fund

S&P 500

deviation

What are the Sharpe ratios for the Miranda Fund and the S&P

500? (Negative values should be indicated

by a minus sign. Do not round intermediate

calculations. Round your answers to 4 decimal places.)

What is the M² measure for Miranda?

(Do not round intermediate calculations. Round your answer

to 2 decimal

places.)

  M² Measure=__________%

What is the Treynor measure for the Miranda Fund and the S&P

500? (Negative values should be indicated by a minus sign.

Do not round intermediate calculations. Round your answers to 4

decimal places.)

What is the Jensen measure for the Miranda Fund? (Do not

round intermediate calculations. Round your answers to 4 decimal

places.)

measure=____________