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Interpreting Sharpe Measure and Treynor Measure

Interpreting these measurements. (Attached)

What is the importance of them. And what is the difference between the performance of them compared to the market index.

Company R Rf Standard Deviation Sharpe Measure
Walt Disney 8.11 4.6 3.786 0.927
Ford 11.886 4.6 3.786 1.925
Microsoft 6.958 4.6 3.786 0.623
Lowe's 6.83 4.6 3.786 0.589
Wal-mart 1.326 4.6 3.786 -0.865

Company R Rf Beta Treynor Measure
Walt Disney 8.11 4.6 1.26 2.786
Ford 11.886 4.6 1.85 3.938
Microsoft 6.958 4.6 1.08 2.183
Lowe's 6.83 4.6 1.06 2.104
Wal-mart 1.326 4.6 0.2 -16.370

Company Rp Rf Beta rM-rf B(rM-rf) Jensen Measure
Walt Disney 8.11 4.6 1.26 6.4 8.064 -4.554
Ford 11.886 4.6 1.85 6.4 11.84 -4.554
Microsoft 6.958 4.6 1.08 6.4 6.912 -4.554
Lowe's 6.83 4.6 1.06 6.4 6.784 -4.554
Wal-mart 1.326 4.6 0.2 6.4 1.28 -4.554

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Company R Rf Standard Deviation Sharpe Measure
Walt Disney 8.11 4.6 3.786 0.927
Ford 11.886 4.6 3.786 1.925
Microsoft 6.958 4.6 3.786 0.623
Lowe's 6.83 4.6 3.786 0.589
Wal-mart 1.326 4.6 3.786 -0.865

Company R Rf Beta Treynor Measure
Walt Disney 8.11 4.6 1.26 2.786
Ford 11.886 4.6 1.85 3.938
Microsoft 6.958 4.6 1.08 2.183
Lowe's 6.83 4.6 1.06 2.104
Wal-mart 1.326 4.6 0.2 -16.370

Company Rp Rf Beta rM-rf B(rM-rf) Jensen Measure
Walt Disney 8.11 4.6 1.26 6.4 8.064 -4.554
Ford 11.886 4.6 1.85 6.4 11.84 -4.554
Microsoft 6.958 4.6 1.08 6.4 6.912 -4.554
Lowe's ...

Solution Summary

This solution is comprised of a detailed explanation to interpret Sharpe Measure and Treynor Measure and explain what is the difference between the performance of them compared to the market index.

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