You are given the following set of data; a. Use a spreadsheet (or a calcilator...
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You are given the following set of data; a. Use a spreadsheet (or a calcilator with a linear regressien function) to determine stock X's beta coefficient, Do not round intermeciate calculations, found your answer to two decimal places. b. Determine the arithmetic average rates of return for Stock x and the Nrse over the period given. Calculate the standard deviations of returns for both 5 tock x and the NrSE. Do not round intermediate calculations. Round yeur answers to two decimal places. past values). Also assume that stock x is in equilibrium - that is, it plots on the Security Market Line. What is the risk-free rate? Do not round intermediate calculations. Round your answer to two decimal places. Choose the correct graph. The cocrect graph is C. Suppose vou hold allarge, well-diversified portfolio and are cansidering adding to that poitfolio either Stock X or another stock, Stock y, which has the same beta as Stock X but a higher standard deviation of returns. stocks x and y have the same expected returns: fx=fy=10.696. Which atock sheuld you choose? In theory, you should as far as
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