Question: Please answer 7. Calculating a beta coefficient for a portfolio Aa Aa Graffiti Computers is a public company, and Computers Fund is a relatively well-diversified


Please answer
7. Calculating a beta coefficient for a portfolio Aa Aa Graffiti Computers is a public company, and Computers 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 Graffiti Computers and Computers Fund Graph A Graph B HISTORIC REALIZED RETURNS HISTORIC REALIZED RETURNS 20 20 10% 10% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) 20% 10% O 20% 20% -10%O/O 1096 HISTORIC REALIZED RETURNS ON THE MARKET (Percent) -10%) -20% -20% Which of the graphs most accurately represents the relationship between the market historic realized returns and realized returns on Graffiti Computers? GraphA GraphB Which of the following measures the excess or abnormal return produced by a portfolio over and above the return expected from the portfolio's beta and the risk-free and market rates of return? O Sharpe's reward-to-variability ratio O Treynor's reward-to-volatility ratio Jensen's alpha Which of the following measures the excess or abnormal return produced by a portfolio over and above the return expected from the portfolio's beta and the risk-free and market rates of return? Sharpe's reward-to-variability ratio O Treynor's reward-to-volatility ratio O Jensen's alpha The following table reports some of the regression results for Graffiti Computers and Computers Fund Lower 95% Probability of Confidence Confidence Interval Upper 95% Regression Coefficient Institution t-Statistic t-Statistic Interval Graffiti Computers Intercept Slope (beta) 0.00 -0.09 0.93 -0.02 0.02 1.66 9.71 0.00 1.32 2.01 Computers Fund 0.49 Intercept Slope (beta) 0.00 0.70 0.00 1.09 0.01 1.20 0.00 21.10 1.32 Which of the following statements are consistent with the data for Graffiti Computers? Check all that apply The probability that the true beta is equal to zero is virtually nonexistent. There is a 95% probability that the true beta is between-0.02 and 0.02 There is a 95% probability that the true beta is between 1.32 and 2.01 The estimate for the beta for Graffiti Computers is precise 7. Calculating a beta coefficient for a portfolio Aa Aa Graffiti Computers is a public company, and Computers 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 Graffiti Computers and Computers Fund Graph A Graph B HISTORIC REALIZED RETURNS HISTORIC REALIZED RETURNS 20 20 10% 10% HISTORIC REALIZED RETURNS ON THE MARKET (Percent) 20% 10% O 20% 20% -10%O/O 1096 HISTORIC REALIZED RETURNS ON THE MARKET (Percent) -10%) -20% -20% Which of the graphs most accurately represents the relationship between the market historic realized returns and realized returns on Graffiti Computers? GraphA GraphB Which of the following measures the excess or abnormal return produced by a portfolio over and above the return expected from the portfolio's beta and the risk-free and market rates of return? O Sharpe's reward-to-variability ratio O Treynor's reward-to-volatility ratio Jensen's alpha Which of the following measures the excess or abnormal return produced by a portfolio over and above the return expected from the portfolio's beta and the risk-free and market rates of return? Sharpe's reward-to-variability ratio O Treynor's reward-to-volatility ratio O Jensen's alpha The following table reports some of the regression results for Graffiti Computers and Computers Fund Lower 95% Probability of Confidence Confidence Interval Upper 95% Regression Coefficient Institution t-Statistic t-Statistic Interval Graffiti Computers Intercept Slope (beta) 0.00 -0.09 0.93 -0.02 0.02 1.66 9.71 0.00 1.32 2.01 Computers Fund 0.49 Intercept Slope (beta) 0.00 0.70 0.00 1.09 0.01 1.20 0.00 21.10 1.32 Which of the following statements are consistent with the data for Graffiti Computers? Check all that apply The probability that the true beta is equal to zero is virtually nonexistent. There is a 95% probability that the true beta is between-0.02 and 0.02 There is a 95% probability that the true beta is between 1.32 and 2.01 The estimate for the beta for Graffiti Computers is precise
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