Avangard Analytics is a public company, and Analytics 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 Avangard Analytics and Analytics Fund. Graph A Graph B HISTORIC REALIZED RETURNS HISTORIC REALIZED RETURNS 20% 20% 10% -20% -10% / O -20% O 10% 20% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) 10% 20% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) -10% O -10% -20% -20% What institution is most accurately represented on graph A? Avangard Analytics O Analytics Fund Which of the following measures the return earned on a security or portfolio in excess of that which could have been earned on a risk-free asset divided by its beta? Sharpe's reward-to-variability ratio Treynor's reward-to-volatility ratio Jensen's alpha O The following table reports some of the regression results for Avangard Analytics and Analytics Fund. Regression Coefficient Probability of t-Statistic Lower 95% Confidence Interval Upper 95% Confidence Interval Institution t-Statistic 0.00 0.02 Avangard Analytics Intercept Slope (beta) Analytics Fund Intercept -0.09 9.71 0.93 0.00 -0.02 1.32 1.66 2.01 0.00 0.00 0.70 0.70 0.19 0.49 0.00 0.00 0.01 Clan (hata 120 2110 The following table reports some of the regression results for Avangard Analytics and Analytics Fund. Regression coefficient Probability of t-Statistic Lower 95% Confidence Interval Upper 95% Confidence I nterval Institution t-Statistic 0.00 1.66 -0.09 9.71 0.93 0.00 -0.02 1.32 0.02 2.01 Avangard Analytics Intercept Slope (beta) Analytics Fund Intercept Slope (beta) 0.01 0.00 1.20 0.70 0.00 0.49 21.10 0.00 1.09 1.32 Which of the following statements are consistent with the data for Avangard Analytics? Check all that apply. The probability that the true beta is equal to zero is virtually nonexistent. There is a 95% probability that the true beta is between -0.02 and 0.02. There is a 95% probability that the true beta is between 1.32 and 2.01. The estimate for the beta for Avangard Analytics is precise. Avangard Analytics is a public company, and Analytics 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 Avangard Analytics and Analytics Fund. Graph A Graph B HISTORIC REALIZED RETURNS HISTORIC REALIZED RETURNS 20% 20% 10% -20% -10% / O -20% O 10% 20% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) 10% 20% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) -10% O -10% -20% -20% What institution is most accurately represented on graph A? Avangard Analytics O Analytics Fund Which of the following measures the return earned on a security or portfolio in excess of that which could have been earned on a risk-free asset divided by its beta? Sharpe's reward-to-variability ratio Treynor's reward-to-volatility ratio Jensen's alpha O The following table reports some of the regression results for Avangard Analytics and Analytics Fund. Regression Coefficient Probability of t-Statistic Lower 95% Confidence Interval Upper 95% Confidence Interval Institution t-Statistic 0.00 0.02 Avangard Analytics Intercept Slope (beta) Analytics Fund Intercept -0.09 9.71 0.93 0.00 -0.02 1.32 1.66 2.01 0.00 0.00 0.70 0.70 0.19 0.49 0.00 0.00 0.01 Clan (hata 120 2110 The following table reports some of the regression results for Avangard Analytics and Analytics Fund. Regression coefficient Probability of t-Statistic Lower 95% Confidence Interval Upper 95% Confidence I nterval Institution t-Statistic 0.00 1.66 -0.09 9.71 0.93 0.00 -0.02 1.32 0.02 2.01 Avangard Analytics Intercept Slope (beta) Analytics Fund Intercept Slope (beta) 0.01 0.00 1.20 0.70 0.00 0.49 21.10 0.00 1.09 1.32 Which of the following statements are consistent with the data for Avangard Analytics? Check all that apply. The probability that the true beta is equal to zero is virtually nonexistent. There is a 95% probability that the true beta is between -0.02 and 0.02. There is a 95% probability that the true beta is between 1.32 and 2.01. The estimate for the beta for Avangard Analytics is precise