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Excel Activity: Evaluating Risk and Retum Bartman Industries's and Reynolds Inc's stock prices and dividends, along with the Winslow 5000 index, are shown here for
Excel Activity: Evaluating Risk and Retum 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. 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 markel'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
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