Consider the following historic information on the market, the risk-free rate (T-Bills) and two mutual funds, Templeton and Fidelity.

	Templeton	Fidelity	Market	T-Bills
Average Return	14.59 %	7.49%	11.46%	2.20%
Beta	1.50	0.70	1	0

a.Compute the Treynor Indexes for each fund.

b.Compare each fund's return to that predicted by the CAPM (SML).

a.The Treynor Index for the Templeton Fund is

nothing%. (Round to two decimal places.)The Treynor Index for the Fidelity Fund is

nothing%. (Round to two decimal places.)

b.The difference between the actual Templeton Fund return and the return predicted by the CAPM

left bracket Avg left parenthesis k right parenthesis minus Upper E left parenthesis k right parenthesis right bracket[Avg(k)E(k)]

is nothing%.

(Round to two decimal places.)The difference between the actual Fidelity Fund return and the return predicted by the CAPM

left bracket Avg left parenthesis k right parenthesis minus Upper E left parenthesis k right parenthesis right bracket[Avg(k)E(k)]

is nothing%.

(Round to two decimal places.)

Which was the better performing fund compared to the SML? (Select the best choice below.)

A. Templeton

B. Fidelity