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Excel Online Structured Activity: Characteristic Line and Security Market Line You are given the following set of data: Year 1 2 3 4 5 67

Excel Online Structured Activity: Characteristic Line and Security Market Line You are given the following set of data: Year 1 2 3 4 5 67 HISTORICAL RATES OF RETURN Stock X NYSE - 26.5% 37.2 23.8 - 7.2 6.6 20.5 30.6 - 23.0% 21.0 13.5 4.0 7.2 18.0 19.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
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Excel Online Structured Activity: Characteristic Line and Security Market Line You are given the following set of data: The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X 's beta coefficient. D not round intermediate calculations. Round your answer to two decimal places. Beta = b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations, Round your answers to two decimal places. r^M=FM,Averag, and both x and bx in the future will equal their past values). Also assume that 5 tock X is in equilibrium - that is, it plots on the Security Market Line. What is the risk-free rate? Do not round intermediate calculations. Round your answer to two decimal places: d. Plot the Security Market Line

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