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8-22. Evaluating Risk and Return Bartman Industriess and Reynolds Inc.s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the

8-22.

Evaluating Risk and Return Bartman Industriess and Reynolds Inc.s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 20122017. The Winslow 5000 data are adjusted to include dividends.

Bartman Industries

Reynolds Inc.

Winslow 5000

Year

Stock Price

Dividend

Stock Price

Dividend

Includes Dividends

2017

$17.25

$1.15

$48.75

$3.00

$11,663.98

2016

14.75

1.06

52.30

2.90

8,785.70

2015

16.50

1.00

48.75

2.75

8,679.98

2014

10.75

0.95

57.25

2.50

6,434.03

2013

11.37

0.90

60.00

2.25

5,602.28

2012

7.62

0.85

55.75

2.00

4,705.97

Suppose an investor wants to include Bartman Industriess stock in his portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolios required return if it consists of 25% of Bartman, 15% of Stock A, 40% of Stock B, and 20% of Stock C. in excel

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