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You have come across the following graph for Fisher and Paykel Healthcare: FPH Returns vs....

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You have come across the following graph for Fisher and Paykel Healthcare: FPH Returns vs. NZX50 Index Returns IN Pos Retumon FPM y=0.8152x + 0.0234 ION ION ISN -5% ON 15 Retum on NZX 50 Index 6 Explain what each of the scatterplot, the diagonal line and the equation represents. In addition, explain what investors can understand from this analysis about Fisher and Paykel Healthcare shares. Fill in your answer here 7 Use the CAPM to calculate the expected return FPH, from the previous question, if the expected return on the market is 10% and the risk-free rate is 4% Fill in your answer here a The manager of your KiwiSaver Fund expects the fund to earn a rate of return of 14% this year. The beta (B) of the fund's portfolio is 1.20. The rate of return available on risk-free assets is 4% and you expect the rate of return on an NZX50 Index Fund (the market portfolio) to be 10%. Does your KiwiSaver fund offer an attractive expected return? Explain why or why not. Fill in your answer here

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