1. Following stocks are all trading in the New York Stock Exchange (NYSE) You can find the expected retums of each stocks and also their covariance with the market Share Expected Cov with Retums Market IBM 4% 28 Google 5.08% 24 TD 12% 67 Baltimore 14% 82 The average return on the NYSE is 8.5% The standard deviation of returns on the NYSE is 7.5 The yield on long-term Treasury bills is 2.5% A) B) Calculate the required retums for each of the above shares. (Hint calculate the Beta for each share first) I Graph the security market line and plot the risk and return for each individual share on this graph and comment about the valuations of these stocks Based on your answer to the above question, which 2 stocks would you pick to include in your portfolio + 1001 ENG US 149 PM 2016-11-25