1. Following stocks are all trading in the New York Stock Exchange (NYSE) You can find the expected returns of each stocks and also their covarance with the market Expected Returns Cov with Market Share 4% IBM Google TD Baltimore 28 24 67 82 5 08% 12% 14% The average return on the NYSE is 8 5% The standard deviation of retu on the NYSE is 7.5 The yield on long-tenn Treasury bills is 2.5% A) Calculate the required returns for each of the above shares. (Hint calculate the Betafor cach share first) B) Graph the security matket line and plot the rizk and return for each individual share on this graph and comment about the valuations of these stocks C) Based on your answer to the above question, which 2 stocks would you pick to include in your portfolio US 2018-11-23