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

Assume that the risk-free rate on long-term Treasury bonds is 4.5%. Assume also that the average annual return on the Winslow 5000 is not a good estimate of the markets required returnit is too high. So use 10% as the expected return on the market. Use the SML equation to calculate the two companies required returns. (in excel)