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%