Lumia 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 Lumia Aviation and Aviation Fund. Graph A Graph B HISTORIC REALIZED RETURNS HISTORIC REALIZED RETURNS 20% 20% 1010% HISTORIC REALIZED RETURNS ON THE MARKET (Percent 10% 20% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) - 10 -10% -20% -20% Which of the graphs most accurately represents the relationship between the market historic realized returns and realized returns on Aviation Fund? Graph B Graph A Which of the following measures the average return earned on a security or portfolio in excess of that which could have been earned on a risk-free asset divided by its beta? Jensen's alpha Treynor's reward-to-volatility ratio Sharpe's reward-to-variability ratio The following table reports some of the regression results for Lumia Aviation and Aviation Fund. Regression Coefficient - Statistic Probability of t- Statistic Lower 95% Confidence Interval Upper 95% Confidence Interval Institution Lumia Aviation Intercept -0.02 0.00 1.66 -0.09 9.71 0.93 0.00 0.02 2.01 1.32 Slope (beta) Aviation Fund 0.49 Intercept Slope (beta) 0.00 1.20 0.70 0.00 0.00 1.09 0.01 1.32 21.10 Which of the following statements are consistent with the data for Aviation Fund? Check all that apply. The estimated beta is 1.32. The CAPM poorly explains its average return. The CAPM explains its average return very well. The estimated beta is 1.20