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2 . You have been given the following monthly data: Company ai ( Intercept ) sigma i riM Intel 0 . 2 4 1

2. You have been given the following monthly data:
Company ai (Intercept)\sigma i riM
Intel 0.2413.3%0.71
Ford 0.0914.00.20
Anheuser 0.157.90.56
Merck 0.0310.60.69
S&P 5000.005.51.00
A) Compute the beta coefficient for each stock.
B) Assuming a risk-free rate of 6 percent and an expected return for the market portfolio of 13 percent, compute the expected (required) return for all the stocks.

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