1. Choose one publicly traded stock that has not been chosen by any other student and estimate its required rate of return according to CAPM (Equation 11.7, pp373, Example 11.8). (Hint, from yahoo.com/finance find its beta, and find 10-year Treasury note rate or yield for the day you are estimating the return (Current Risk free rate); for (Rm - Rf), use the historical average presented in Figure 10-10, page 326; In Figure 10-10, For Rm use large company stock, and for Rf use long term government bond. 2. Use the same company in 1 and download 5 years of monthly data. Estimate the stand alone risk of this company. (Hint: Estimate monthly return and then estimate Standard Deviation of monthly returns). 1. Choose one publicly traded stock that has not been chosen by any other student and estimate its required rate of return according to CAPM (Equation 11.7, pp373, Example 11.8). (Hint, from yahoo.com/finance find its beta, and find 10-year Treasury note rate or yield for the day you are estimating the return (Current Risk free rate); for (Rm - Rf), use the historical average presented in Figure 10-10, page 326; In Figure 10-10, For Rm use large company stock, and for Rf use long term government bond. 2. Use the same company in 1 and download 5 years of monthly data. Estimate the stand alone risk of this company. (Hint: Estimate monthly return and then estimate Standard Deviation of monthly returns)