INTC AMD 0.07334486 88% 0.01358311 16% ^W5000 0.00993921 12% AMD 0.159052 INTC 0.31960864 Beta your APR 5. Now use the CAPM/SML Equation to estimate each stocks required return. Use 9.25% as the required market return and the recent 10-year Treasury rate of 0.75% as the risk-free rate. Would you recommend buying AMD and/or Intel if average for each stock from #2 is your expected return? Explain your answer. 6. Construct a graph of the Security Market Line given by the parameters in #5. Point out the SML returns you calculated in #5 on your SML. Also, find and plot AMD's and Intel's expected returns from the information given below gathered from their recent Yahoo Finance stock quotes against each stock's beta on your SML graph. Would you recommend buying AMD and/or Intel based on this information? Explain your answers. Note: you are evaluating each stock individually, not in comparison in one another. Stock AMD Intel $53.50 Current Price $79.00 Estimated Price 1 year from now $80.79 $56.59 Annual Expected Dividend (D1) $0 $1.32 INTC AMD 0.07334486 88% 0.01358311 16% ^W5000 0.00993921 12% AMD 0.159052 INTC 0.31960864 Beta your APR 5. Now use the CAPM/SML Equation to estimate each stocks required return. Use 9.25% as the required market return and the recent 10-year Treasury rate of 0.75% as the risk-free rate. Would you recommend buying AMD and/or Intel if average for each stock from #2 is your expected return? Explain your answer. 6. Construct a graph of the Security Market Line given by the parameters in #5. Point out the SML returns you calculated in #5 on your SML. Also, find and plot AMD's and Intel's expected returns from the information given below gathered from their recent Yahoo Finance stock quotes against each stock's beta on your SML graph. Would you recommend buying AMD and/or Intel based on this information? Explain your answers. Note: you are evaluating each stock individually, not in comparison in one another. Stock AMD Intel $53.50 Current Price $79.00 Estimated Price 1 year from now $80.79 $56.59 Annual Expected Dividend (D1) $0 $1.32