Use excel please. Thank you! 5. You have observed the following...
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Use excel please. Thank you!
5. You have observed the following returns over time: Year 2016 2017 2018 2019 2020 Stock M 14% 19% -16% 3% 20% Stock N 13% 7% -5% 1% 11% Market 12% 10% -12% 1% 15% Assume that the risk-free rate is 6% and the market risk premium is 5%. a. Calculate the betas of Stocks M and N, respectively. Hint: Use 2 methods discussed in CH 6. b. Calculate the required rates of return for Stocks M and N, respectively, c. Calculate the required return for a portfolio, consisting of 60% in Stock M and 40% in Stock N. d. If Stock M's expected return is 18%, is Stock M under- or over-valued

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