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: fill in the blank $30$

Reynolds's beta: fill in the blank $31$

Are these betas consistent with your graph?

These betas consistent with the scatter diagrams.

Assume that the risk$-$free rate on long$-$term Treasury bonds is $4\mathrm{.}5\%.$ 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: fill in the blank $33\%$

Reynolds's required return: fill in the blank $34\%$

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: fill in the blank $35$

Portfolio's required return: fill in the blank $36\%$

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 $0\mathrm{.}742,0\mathrm{.}963,$ and $1\mathrm{.}534,$ respectively. Calculate the new portfolio's required return if it consists of $20\%$ of Bartman, $20\%$ of Stock A$,40\%$ of Stock B$,$ and $20\%$ of Stock C$.$ Round your answer to two decimal places.Excel Activity: Evaluating Risk and Return

Download spreadsheet Evaluating$\_$Risk and Return$-0$d$44$b$9.$xlsx

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.