Hellocan you show how to graph this and how i can figure out what the beta is oout of this informatio. There is no expected return, in the second picture i have uploaded is the solutions for it, i guess i just have to assume a expected return which they assumed it to be 10%Which formula was used to calculate beta? why does it make sense to divide expected return with treynor to get beta?- This is the whole problem 2.2rf=0AssetTi bi=E(Ri)/T_i E(Ri)=T_i*biM10%110%A20%0.510%в5%210%Treynor line is steepest for A, then M, then BA highest Treynor, then M, then BSHLTo2. PROBLEM 2 (INVESTMENTS]A US investor considers buying US risky assets. The investor uses the single-index model to describe themarket for risky assets.1. How do you calculate the alpha and beta for a specific risky asset?Assets A, B, and the market portfolio (M) all have the same expected return. Their dividend yields as well asthe risk free interest rate are 0. Asset A has a Treynor ratio of 20%, Asset B has a Treynor ratio of 5%, whileM has a Treynor ratio of 10%.2. Illustrate the Treynor ratios for assets A, B, and M graphically.

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Assets A, B, and the market portfolio (M) all have the same expected return. Their dividend yields as well as the risk free interest rate are 0. Asset A has a Treynor ratio of 20%, Asset B has a Treynor ratio of 5%, while M has a Treynor ratio of 10%. 2. Illustrate the Treynor ratios for assets A, B, and M graphically.

Assets A, B, and the market portfolio (M) all have the same expected return. Their dividend yields as well as the risk free interest rate are 0. Asset A has a Treynor ratio of 20%, Asset B has a Treynor ratio of 5%, while M has a Treynor ratio of 10%. 2. Illustrate the Treynor ratios for assets A, B, and M graphically.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 4P

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Hello Can you explain this
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Hi please solve this both parts