had to add second picture as question does not appear 100% in the first one

The following are five IT stocks' statistical profilesthe risk-free rate is 1.1%. FB 201601-202012 Excess return (%) Standard dev (%) Sharpe ratio Alpha (%) Market beta Size (SMB) beta B/M (HML) beta AAPL AMZN NFLX GOOGL 22.0 37.7 34.7 36.8 17.6 28.0 30.1 28.7 37.1 21.6 0.75 1.22 1.17 0.96 0.76 0.0 0.8 0.5 1.0 0.1 1.25 1.43 1.39 1.08 1.05 -0.37 -0.48 -0.52 -0.18 -0.42 -0.34 -0.73 -0.91 -0.91 -0.15 According to the statistics, which of the following statements regarding the five sto A B NFLX has the highest systematic risk AMZN has the highest firm-specific risk AAPL has the steepest security characteristic line slope FB is the most underpriced stock per this factor model C D Hint: Chapters 7 and 9. additional questions Additional Question 1 A1 Question 18 D F G H E Question 18 2 3 The following are five IT stocks' statistical profiles-the risk-free rate is 1.1%. 5 201601-202012 FB AAPL AMZN NFLX GOOGL 6 Excess return (%) 22.0 37.7 34.7 36.8 17.6 7 Standard dev (%) 28.0 30.1 28.7 37.1 21.6 8 Sharpe ratio 0.75 1.22 1.17 0.96 0.76 9 Alpha (%) 0.0 0.8 0.5 1.0 0.1 10 Market beta 1.25 1.43 1.39 1.08 1.05 11 Size (SMB) beta -0.37 -0.48 -0.52 -0.18 -0.42 12 B/M (HML) beta -0.34 -0.73 -0.91 -0.91 -0.15 13 14 According to the statistics, which of the following statements regarding the five stocks is true? 15 16 A NFLX has the highest systematic risk 17 B AMZN has the highest firm-specific risk 18 C AAPL has the steepest security characteristic line slope 19 D FB is the most underpriced stock per this factor model 20 21 Hint: Chapters 7 and 9. additional questions Additional Question 1 32 23 4 25 26