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3: Assignment - Risk and Return: Part II Calculating a beta coefficient for a portfolio vangard Electric is a public company, and Electric Fund is

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3: Assignment - Risk and Return: Part II Calculating a beta coefficient for a portfolio vangard Electric is a public company, and Electric Fund is a relatively well-diversified mutual fund. The following two graphs show regressions for harket's historic realized returns versus historic realized returns on Avangard Electric and Electric Fund. Which of the graphs most accurately represents the relationship between the market historic realized returns and realized returns on Electric Fund? Graph A Graph B Which of the following measures the average return earned by a portfolio, over and above the risk-free rate of return, divided by the standard deviation of the portfolio's average returns? Which of the graphs most accurately represents the relationship between the market historic realized returns and reaiized returns on Electric Fund? Graph A Graph B Which of the following measures the average return earned by a portfolio, over and above the risk-free rate of return, divided by the standard deviation of the portfolio's average returns? Treynor's reward-to-volatility ratio Sharpe's reward-to-variablify ratio Jensen's alpha The following table reports some of the regression results for Avangard Electric and Electric Fund. 3: Assignment- Risk and Return: Part II Sharpe's reward-to-variability ratio Jensen's alpha The following table reports some of the regression results for Avangard Electric and Electric Fund. Which of the following statements are consistent with the data for Electric Fund? Check all that apply. The estimated beta is 1.20. The CAPM explains its average return very well. The CAPM poorly explains its average return. The estimated beta 151,32

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