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Part II . Answer the following questions by filling in the appropriate cell in the Excel template. All the inputs ( stock prices, beta, expected

Part II. Answer the following questions by filling in the appropriate cell in the Excel template. All the inputs (stock prices, beta, expected return on the market, and the risk-free rate) must be hard coded (i.e., typed in as a number). To get full credit, your answers to #1, #3, and #6 must be typed in as formulas and not hard coded --- this means you need to reference the cells containing your inputs.
1. Calculate the annual return for each of the three stocks. (10 points). For each stock,
a. What is the arithmetic average return? (5 points)
b. What is the standard deviation? (5 points)
c. What range of returns should you expect to see with a 95 percent probability?
(5 points)
2. What is the beta of each stock? (5 points. Note: You can get beta from the Summary page on Yahoo!Finance.)
3. Assuming an expected return on the market of 9% and a risk-free rate of 4.756%, what is the expected return for each stock according to the CAPM? (15 points)
4. Which of the three stocks has the highest total risk? (2 points) Why? (8 points. Hint: the correct reason is based on one of your answers from #1 through #3 above. You need to cite that measure in your answer to this question. Read sections 11.5 and 11.6 in the e-textbook for more information.)5. Which of the three stocks has the highest systematic risk? (2 points) Why? (8 points. Hint: the correct reason is based on one of your answers from #1 through #3 above. You need to cite that measure in your answer to this question. Read sections 11.5 and 11.6 in the e-textbook for more information.)
6. If you form a portfolio with 50% invested in ZM, and the remainder split equally between SNAP and CCL,
a. What is the expected return on your portfolio? (5 points)
b. What is the beta of your portfolio? (5 points)
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