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d . Estimate Goodman's and Landry's betas as the slopes of regression lines with stock return on the vertical axis ( y - axis )
d Estimate Goodman's and Landry's betas as the slopes of regression lines with stock return on the vertical axis yaxis and market return on the horizontal axis xaxisHint: Use Excel's SLOPE function. Round your answers to four decimal places.
Goodmans beta:
Landrys beta:
e The riskfree rate on longterm Treasury bonds is Assume that the market risk premium is What is the required return on the market? Round your answer to two decimal places.
Now use the SML equation to calculate the two companies' required returns. Round your answers to two decimal places.
Goodmans required return :
Landrys required return :
f If you formed a portfolio that consisted of Goodman stock and Landry stock, what would its beta and its 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.
Portfolios beta:
Portfolios required return:
g Suppose an investor wants to include some Goodman Industries stock in his portfolio. Stocks A B and C are currently in the portfolio, and their betas are and respectively. Calculate the new portfolio's required return if it consists of Goodman, Stock A Stock B and Stock C Round your answer to two decimal places.
Check all asnwers and help with the above please, thank you!
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