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Based on five years of monthly data, you derive the following information for the companies listed: 0 Company a(Intercept) Intel 0.25 13.50% 0.67 Ford 0.12

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Based on five years of monthly data, you derive the following information for the companies listed: 0 Company a(Intercept) Intel 0.25 13.50% 0.67 Ford 0.12 14.30 0.27 Anheuser Busch 0.12 8.00 0.54 Merck 0.04 10.10 0.78 S&P 500 0.00 5.50 1.00 a. Compute the beta coefficient for each stock. Do not round Intermediate calculations, Round your answers to three decimal places Intel: Ford: Anheuser Busch Merck D. Assuming ansk-free rate of 9 percent and an expected return for the market portfolio of 14 percent, compute the expected (required) return for all the stocks. Do not round intermediate calculations. Round your answers to two decimal places Intel Ford Anheuser Busch 9 Merck: % c. Choose the correct SML graph for the following estimated returns for the next year. Intel - 19 percent Ford - 15 percent

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