(Solved): 7. Calculating a beta coefficient for a portfolio PietreDure General is a public company, and Gener ...

7. Calculating a beta coefficient for a portfolio PietreDure General is a public company, and General Fund is a relatively well-diversified mutual fund. The following two graphs show regressions for the market's historic realized returns versus historic realized returns on PietreDure General and General Fund. Which of the graphs most accurately represents the relationship between the market historic realized returns and realized returns on pietreDure General? Graph B Graph A Which of the following measures the average return earned on a security or portfolio in excess of that which could bave been earned on-a risk-free asset divided by its beto? Sharpe's rewand-to-varlability ratio Treynor's reward-to-volatility ratio Jensen's alpha Which of the following statements are consistent with the data for General fund? Check all that apply. The probability of the intercept's $t$-statistic is lower than $5\%$. The $95\%$ confidence interval is from 1.09 to 1.32 . The CAPM poorly explains the average return of the General Fund. The estimated beto is 1.20 .