Ch $03$: Assignment $-$ Risk and Return: Part II

Grotesque Aviation is a public company, and Aviation 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 Grotesque Aviation and Aviation Fund.

What institution is most accurately represented on graph A$?$

Aviation Fund

Grotesque Aviation

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