The table shows the average returns and betas for the five ETFs, S P 500, and Treasury VONF IJT PDP FTA FNY S P 500 Treasury Annualize mean 0 07148 0 11941 0 09613 0 07483 0 10233 0 09637 0 02541 Beta 1 01106 1 11377 1 01507 1 02652 1 09928 1 00000 0 00000 Create a SML with the S P 500 index's and the Treasury's average returns and betas Determine whether the ETFs have return and beta combinations above or below the line you generated Explain the arbitrage strategy you would form with one of the ETFs, index, or Treasury

Question: The table shows the average returns and betas for the five ETFs, S&P 500, and Treasury. VONF IJT PDP FTA FNY S&P 500 Treasury Annualize

The table shows the average returns and betas for the five ETFs, S&P 500, and Treasury.

VONF IJT PDP FTA FNY S&P 500 Treasury
Annualize mean 0.07148 0.11941 0.09613 0.07483 0.10233 0.09637 0.02541
Beta 1.01106 1.11377 1.01507 1.02652 1.09928 1.00000 0.00000

Create a SML with the S&P 500 index's and the Treasury's average returns and betas.
Determine whether the ETFs have return and beta combinations above or below the line you generated. Explain the arbitrage strategy you would form with one of the ETFs, index, or Treasury.

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