11. The Treasury bill rate at the end ofMay 2003 was approximately 6 percent. Given the betas for Reynolds Computer and Andrews and using the preceding data for the Market Index as a measure for the market portfolio expected return, estimate an appropriate required rate of return given the level of systematic risk for each stock.

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END OF MONTH PRICES MONTH MARKET REYNOLDS ANDREWS 2001 May $1,090.82 $20.60 $24.00 June 1,133.84 23.20 26.72 July 1,120.67 27.15 20.94 August 957.28 25.00 15.78 September 1,017.01 32.88 18.09 October 1,098.67 32.75 21.69 November 1,163.63 30.41 23.06 December 1,229.23 36.59 28.06 2002 January 1,279.64 50.00 26.03 February 1,238.33 40.06 26.44 March 1,286.37 40.88 28.06 April 1,335.18 41.19 36.94 May 1,301.84 34.44 36.88 June 1,372.71 37.00 37.56 July 1,328.72 40.88 23.25 August 1,320.41 48.81 22.88 September 1,282.71 41.81 24.78 October 1,362.93 40.13 27.19 November 1,388.91 43.00 26.56 December 1,469.25 51.00 24.25 2003 January 1,394.46 38.44 32.00 February 1,366.42 40.81 35.13 March 1,498.58 53.94 44.81 April 1,452.43 50.13 30.23 May 1,420.60 43.13 34.00