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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, 2009-2018: a. Which of the following graphs represents the graphical derivation of beta for assets A and B? 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 a. Which of the following graphs represents the graphical derivation of beta for assets A and B? (Select the best answer below.) OA. Beta Derivation Beta Derivation Asset Return (%) 5 10 15 20 Asset Return (%) 16 5 10 15 20 -10 -15 Asset A Asset B -10 -15 Asset A -Asset B Market Return (96) Market Return (%) Beta Derivation Beta Derivation Asset Return (%) 5 15 20 Asset Return (%) 35 0 15 20 & -15 - Asset A Asset B Market Return (96) -10 -15 - Asset A Asset B Market Return (9) -20 -20 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.) i Data Table - X O A. (1.089.0.719) O B. (-1.089.-0.719) O C. (1.089.-0.719) OD. (-1.089.0.719) in order to copy the contents of the data table below into a (Click on the icon here spreadsheet.) c. Using the betas found in part b, which asset is more risky? (Select the best answer below.) O A. Asset A OB. Asset B Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Annual return Market portfolio Asset A 1896 2896 1396 2296 7% 1496 1496 1896 12% 2096 - 596 - 296 - 99 - 1296 -896 9% 896 1396 Asset B 1996 1596 16% 9% 1396 - 596 2% 696 10% Click to select your answer. Print Done