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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

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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 A. B. Stocks' Returns vs. Index's Returns Index's Returns - Bartman Industries - Reynolds Ine D. - Bartman Industries - Reynolds Inc. Excel Activity: Evaluating Risk and Return 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. 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. lagram that shows Bartman's and Reynolds's returns on the vertical axis and the Winslow 5000 e horizontal axis. Choose the correct graph. Stocks' Returns v2. Index's Retums B. 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 portfollo. Stocks A, B, and C are currently in the portfolio, and their betas are 0.842,0.979, and 1.482 , 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. 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. 9. Assume that the risk-free rate on long-term Treasury bonds is 5.5\%. 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: % C. Stocks' Returns vs. Index's Retums D. Stocks' Returns vs. Index's R. Bartman Industries - Reynolds Inc. b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the samp standard deviation formula, which corresponds to the STDEV.S function in Excel.) Round your answers to two decim places. c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places. 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.S function in Excel.) Round your answers to two decimal places. c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places. 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. 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 A. B. Stocks' Returns vs. Index's Returns Index's Returns - Bartman Industries - Reynolds Ine D. - Bartman Industries - Reynolds Inc. Excel Activity: Evaluating Risk and Return 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. 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. lagram that shows Bartman's and Reynolds's returns on the vertical axis and the Winslow 5000 e horizontal axis. Choose the correct graph. Stocks' Returns v2. Index's Retums B. 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 portfollo. Stocks A, B, and C are currently in the portfolio, and their betas are 0.842,0.979, and 1.482 , 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. 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. 9. Assume that the risk-free rate on long-term Treasury bonds is 5.5\%. 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: % C. Stocks' Returns vs. Index's Retums D. Stocks' Returns vs. Index's R. Bartman Industries - Reynolds Inc. b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the samp standard deviation formula, which corresponds to the STDEV.S function in Excel.) Round your answers to two decim places. c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places. 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.S function in Excel.) Round your answers to two decimal places. c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000. Round your answers to two decimal places. 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

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