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Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000

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Bartman Industries's and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends Bartman Industries Reynolds Inc. Winslow 5000 Year Stock Price Dividend Stock Price Dividend Includes Dividends 2020 $17.25 $1.10 $49.75 $3.05 $12,036,85 2019 14.70 1.01 53.50 3.00 9,137,841 2018 16.35 0.95 49.75 2.90 9,017.59 2017 10.60 0.90 57:25 2.60 6,571.21 2016 11.17 0.85 60.60 2.40 5,714.21 2015 7.42 0.80 56.25 2.15 4,781 94 The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. Download spreadsheet Evaluating Risk and Return:93af79.xlsx a. Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow 5000 Index. Then calculate each entity's average return over the 5-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.) Round your answers to two decimal places. Year Reynolds Inc. Winslow 5000 Bartman Industries % 9 9% 9% % %% % % % 2020 2019 2018 2017 2016 Average % % % % % % % % % b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, which corresponds to the STDEV.Sunction in Excel.) Round your answers to two decimal places Bartman Industries Reynolds Inc. Winslow 5000 Standard deviation % % % c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places, Bartman Industries Winslow 5000 Reynolds Inc. Coefficient of variation d. Assume the risk-free rate during this time was 3%. Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns. Round your answers to four decimal places Bartman Industries Reynolds Inc. Winslow 5000 Sharpe ratio e. Construct a scatter diagram that shows Bartman's and Reynolds's returns on the vertical axis and the Winslow 5000 Index's returns on the horizontal axis. Choose the correct graph. The correct graph is f. Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's returns. Round your answers to four decimal places. Bartman's beta: Reynolds's beta Are these betas consistent with your graph? These betos consistent with the scatter diagrams. 9. 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 market's required return-it is too high So use 10% as the expected return on the market. Use the SML equation to calculate the two companies' required returns. Round your answers to two decimal places. Bartman's required return; % Reynolds's required return; % h. If you formed a portfolio that consisted of 50% Bartman and 50% Reynolds, what would the portfolio's beta and required return be? Round your answer for the portfolio's beta to four decimal places and for the portfolio's required return to two decimal places. Portfolio's beta: Portfolio's required return; % 1. Suppose an investor wants to include Bartman Industries's stock in his portfolio Stocks A, B, and Care currently in the portfolio, and their betas are 0.720, 0.922, and 1.270, respectively. Calculate the new portfolio's required return if it consists of 25% of Bartman, 15% of Stock A, 45% of Stock B, and 15% of Stock C. Round your answer to two decimal places

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