c$.$

D$.$

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 betas

consistent with the scatter diagrams.

g$.$ Assume that the risk$-$free rate on long$-$term Treasury bonds is $5\mathrm{.}5\%.$ 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:

$\%$

i$.$ Suppose an investor wants to include Bartman Industries's stock in his portfolio. Stocks A$,$ B$,$ and C are currently in the portfolio, and their betas are $0\mathrm{.}727,$

$0\mathrm{.}889,$ and $1\mathrm{.}528,$ respectively. Calculate the new portfolio's required return if it consists of $25\%$ of Bartman, $20\%$ of Stock A$,35\%$ of Stock B$,$ and $20\%$ of Stock

C$.$ Round your answer to two decimal places.

$\%$