In the following table you are presented with six years of realized return data for the stock o

$xYZ$ Company and for a market index. The risk$-$free return is $4\%$ and is expected to remair

at this level for the foreseeable future.

When answering the following questions, consider both raw returns and excess returns.

a$)$ Calculate the average market index return.

b$)$ Calculate the variance of the market index return.

c$)$ Calculate the average return of the stock of $xYZ$ Company.

d$)$ Calculate the covariance between the stock return and the return of the market index.

e$)$ Write the equation of the ex$-$post security market line.