Assume that the situation during Years 1 to 7 is expected to prevail in the future (i.e., , , and both x and bx in the future will equal their past values). Also assume that Stock X is in equilibrium - that is, it plots on the Security Market Line. What is the risk-free rate? Round your answer to two decimal places. %

HISTORICAL RATES OF RETURN
Year		NYSE		Stock X
1		- 26.5%		- 10.0%
2		37.2		25.0
3		23.8		12.5
4		- 7.2		5.0
5		6.6		9.9
6		20.5		15.6
7		30.6		16.3

Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Round your answer to two decimal places. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Round your answers to two decimal places.

		Stock X		NYSE
Average return,		%		%
Standard deviation,		%		%