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6. (20 pts) Consider the following data for two securities in the same industries. Security Beta Implied Rate of Return 1.70 10% B 60 8% 6. a. What are the required rates of return for each of these securities when the average riskless rate is 3.5% and average return on the market is 8.5%? For A: For B 6.b. Show the amount of the risk adjusted excess return, alpha, for each security. Alpha Security Implied ROR Minimum Required Return For A For B 6c. Which security would you select to buy? Why? Write 2 line for reasons in your selection Only] - Word a Bbccc AaBbCcDAoBbCcD AqBbCD AaBbCD AaBbCd AaBbCd AABBCCD AABE Subtitle Subtle Em... Emphasis Intense E. Strong Quote Intense. Subtle Ref. Intense Styles The implied return is 7.22% 10 pts 5. Calculate the fair value based on the following information: Current dividend = $1.67 Normal growth rate = 2.5% Super growth rate = 12% Duration of the super growth rate = 15 years Required return 8.5% I 6. (20 pts) Consider the following data for two securities in the same industries Security Beta Implied Rate of Return 1096 B 60 1.70 896 What are the required rates of return for each of these securities when the average riskless 1h und average return on the market is 8.5%