b. Rader Tire has the following results for the last six periods. Calculate and compare the betas using each index. Do not round intermediate calculations. Round your answers to three decimal places. RATES OF RETURN Proxy Specific Index (%) Period Rader Tire (%) True General Index (%) Busing proxy: Busing true: c. If the current period return for the market is 13 percent and for Rader Tire it is 15 percent, are superior results being obtained for either index beta? Do not round intermediate calculations. Round your answers to two decimal places. E(RR) using proxy: E(RR)using true Rader's performance would be -Select- Problem 7-07 Choose the correct security market line graph for each of the following conditions: a. (1) RFR = 0.06; RM(proxy) = 0.10 (2) Rz = 0.03; RM(true) = 0.13 The correct graph is -Select- . Security market Line 00 10.16 ............. ... 0.1 ...... 0.08 0.04 10.02