Enter your answers into the box below. Make sure you label your answers using (1), (2), etc. You many wish to provide your work for partial credit if your answer is partially correct. 5 XYZ stock has a standard deviation of return of 30% and the stock index has a standard deviation of return of 25%%. The correlation coefficient between stock return and stock index return is 0.52. The stock is expected to pay dividend of $6 in one year and its expected price in one year is $35. The risk-free rate is 3.5%, The stock market index has an expected return of 12%. (1) Estimate the beta of the stock. Is the stock riskier than the stock market index? (2) Use the security market line to determine the required rate of return of the stock (3) Determine the value of the stock. (4) If the stock has a current price of $35, what is the expected return? Would you investment in the stock? Edit View Insert Format Tools Table 12pt - Paragraph * B J U A ZY Ty +