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Need help answering these questions. Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE

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Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE -26.5% 37.2 23.8 Stock X -18.0% 20.0 11.5 3.0 7.5 16.9 19.1 4 6.6 20.5 30.6 a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. 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. Round your answers to two decimal places. Stock X NYSE Average return," Avg Standard deviation, c Assume that the situation during Years 1 to 7 is expected to prevail in the ture i e rx x, a ag rM MA ng and both Ox and bx in the future will equal their past values). Also assume that Stock X is in equilibrium that is, it plots on the Security Market Line. What is the risk-free rate? Round your answer to two decimal places

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