Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets, A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years.

b.Use the characteristic lines from part a to estimate the betas for assets A and B.

c.Use the betas found in part b to comment on the relative risks of assets A and B.

b. Using the characteristic lines from part a, which of the following pairs of data represents the beta estimates for assets A and B? (Select the best answer below.) O A. (0.791,1.379) OB. (-0.791, - 1.379) OC. (-0.791,1.379) OD. (0.791, -1.379) c. Using the betas found in part b, which asset is more risky? (Select the best answer below.) O A. Asset B OB. Asset A 1: Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Annual return Market portfolio M Asset A 6% 11% 2% 8% - 13% -4% 3% 0% 16% 19% 10% 18% 8% 12% 13% 17% Asset B 16% 11% - 10% 3% - 3% 30% 22% 29% 19% 26% 14% 15%