1. Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the Treynor measure of Widget Manufacturing, Inc.?
0.1
0.11
1.6
0.48
2. Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the alpha of Widget Manufacturing, Inc.?
1.0%
3.0%
2.0%
4.0%