Assume that it is year 2000. The following data are available for the XYZ Corporation :

Year Market Return Company Returns 1999 1998 1997 1996 1995 1994 0.27 0.12 0.03 0.12 0.03 0.27 0.25 0.05 0.05 0.15 0.10 0.30 Assume that the risk -free rate is 0.066. Calculate: a) the expected market return; b) the variance of the market return; (c) the expected return for XY2 (d) the covariance of the return for XYZ with the return on the mar ket (e) Write the equation for the security market line. (f) What is the required rate of return for XYZ? g) Discuss how the approach used for estimation in this question differs from that in the last