Choose the correct security market line graph for each of the following conditions a (1) RFR 0 07 RM(proxy) 0 13 (2) Rz 0 05 RM(true) 0 14 The correct graph is Select A Security market Line 0 10 014 10 12 01 10 04 10 03 SMI SME B Security market Line 010 10 14 10 13 101 10 05 6 02 SME SUE c Security market Line 01 on this cou NOTAP SME SMI Security market Line D 0 80 10 10 101 2 10 1 10 00 10 04 0 02 SM SML 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 Period Rader Tire ( ) Proxy Specific Index True General Index ( ) ( ) 13 2 10 11 4 15 13 19 5 20 30 6 1 29 13 12 8 7 3 10 18 7 11 0 Busing proxy Busing true c If the current period return for the market is 13 percent and for Rader Tire it is 14 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 Choose the correct security market line graph for each of the following conditions a (1) RFR 0 07 RM(proxy) 0 13 (2) Rz 0 05 RM(true) 0 14 The correct graph is Select A Security market Line 0 10 014 10 12 01 10 04 10 03 SMI SME B Security market Line 010 10 14 10 13 101 10 05 6 02 SME SUE c Security market Line 01 on this cou NOTAP SME SMI Security market Line D 0 80 10 10 101 2 10 1 10 00 10 04 0 02 SM SML 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 Period Rader Tire ( ) Proxy Specific Index True General Index ( ) ( ) 13 2 10 11 4 15 13 19 5 20 30 6 1 29 13 12 8 7 3 10 18 7 11 0 Busing proxy Busing true c If the current period return for the market is 13 percent and for Rader Tire it is 14 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

Question

Choose the correct security market line graph for each of the following conditions  a  (1) RFR   0 07  RM(proxy)   0 13 (2) Rz   0 05  RM(true)   0 14 The correct graph is  Select    A  Security market Line 0 10 014 10 12 01   10 04 10 03 SMI SME B  Security market Line 010 10 14 10 13 101   10 05 6 02 SME SUE c  Security market Line 01 on this cou NOTAP SME SMI Security market Line D  0 80 10 10 101 2 10 1 10 00 10 04 0 02   SM SML 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 Period Rader Tire ( ) Proxy Specific Index True General Index ( ) ( ) 13 2 10  11 4 15 13 19 5 20 30 6 1 29 13 12 8  7 3   10 18  7  11 0 Busing proxy Busing true c  If the current period return for the market is 13 percent and for Rader Tire it is 14 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  Choose the correct security market line graph for each of the following conditions  a  (1) RFR   0 07  RM(proxy)   0 13 (2) Rz   0 05  RM(true)   0 14 The correct graph is  Select    A  Security market Line 0 10 014 10 12 01   10 04 10 03 SMI SME B  Security market Line 010 10 14 10 13 101   10 05 6 02 SME SUE c  Security market Line 01 on this cou NOTAP SME SMI Security market Line D  0 80 10 10 101 2 10 1 10 00 10 04 0 02   SM SML 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 Period Rader Tire ( ) Proxy Specific Index True General Index ( ) ( ) 13 2 10  11 4 15 13 19 5 20 30 6 1 29 13 12 8  7 3   10 18  7  11 0 Busing proxy Busing true c  If the current period return for the market is 13 percent and for Rader Tire it is 14 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

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Question

Choose the correct security market line graph for each of the following conditions: a. (1) RFR = 0.07; RM(proxy) = 0.13 (2) Rz - 0.05;

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