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Bartman industries's and Reynolds inci's stock prices and dividends, along with the Winsiow 5000 Index, are shown here for the period 20152020. The Winslow 5000 data are adjusted to include dividends. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. Downioad yoreadsheet Evaluating Riak and Return-b38e4 xisx a. Use the data to calculate annual pates of return for lartman, Reynolds, and the Winslow 5000 index. Then calculate each entity's average retum over the 5-year period. (Hinti Remembec, returns are calculated by subtracting the beginning peice from the ending price to get the capital gain or loss, adding the dividend to the capital gain of loss, and divding the result by the beginning price. Assume that dividends are already included in the index. Aso, you cannot calculate the rate of return for 2015 because you do not have 2014 data.) Round your answers to two deomal places. b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000 . (Hint: Use the sample standard deviation formula; which corresponds to the STDEVS function in. Excel.) Round your answers to two decimal places. c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000 , Round your answers to two decimal places. d. Assume the risk-free rate during this time was 3\%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period wsing their average retums, Round your answers to four decimal places. f. Estimate Bartman's and Reynolds's betas by running regrestions of their returns against the index's returns. Round your answers to four decimal places. Bartman's beta: Reynolds's beta: Are these betas consistent with your graph? These betas consistent with the scatter diagrams: 9. Assume that the riak-free rate on long-term Treasucy bonds is 4.5%. Assume also that the average annual return on the Winslow 5000 is not a good estimate of the market's required retum-it is too high. 50 use 9% as the expected return on the market Use the SML equation to calculate the two companies' required returns. Round your answers to two decimal plsces. Bartmanis required return: Reynolds's required retum: h. If you formed a portfolio that censisted of 50% Bartman and 50% Reynolds, what would the portfolio's beta and required return be? Round your answer for the portfolio's beta to four decimal places and for the portolio's required return to two decimal places. Portfoleso's beta: Portfolials required retuen: 6. Suppose an investor wants to include eartmon indurtries's stock in his pertfolis, Stocks A,B, and C are currently in the portfolio, and their betas are 0.814, 0.976, and 1.369, respectively. Colculate the new portiolio's requlred return if it consists of 25% of bartman, 1046 of 5 tock A, 40% of 5 stock. B, and 25% of stock C. Peund your answer to two decimal places

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