Review this spreadsheet and answer the following questions:

1. The portfolio beta calculated is 0.61. Explain how the calculated beta would change if your company were dropped from the portfolio and we recalculated beta. If you company is not included in the spreadsheet, explain how the calculated beta would change if your company were added to the portfolio and we recalculated beta.
2. Assume that the risk-free interest rate is currently -1% and the market risk (r_M) is 9%. Show calculations for the required return (r_i) on your companys stock.
3. Explain how your required return in b would change if the risk-free rate rose to 1%
4. Explain how your required return in b would change if the market risk (r_M) dropped to 6%.

Under Armour Callaway -0.000557414 -0.00145 -0.028695181 0.002906 -0.023836549 0.010619 -0.004519774 -0.00118 -0.046336207 0.032867 1 Date S&P 500 Best Buy Copart GameStop Deere Tesla NETFLIX 2 15-Jun-21 -0.20% -0.68% 0.67% -1.67% 0.007629 -0.02968 -0.015983516 3 14-Jun-21 0.21% -0.37% 0.73% 5.88% -0.01765 0.012789 0.022750987 50 19-Jun-20 -0.55% -1.33% -1.05% 3.99% 0 -0.00304 0.008558028 51 18-Jun-20 0.06% -1.12% -1.06% 2.59% -0.00411 0.01225 0.004689908 52 17-Jun-20 -0.36% -0.28% 2.08% -1.07% -0.01761 0.009825 0.02668929 53 16-Jun-20 54 55 Count 251 251 251 251 251 252 251 56 Average 33.49% 37.49% 40.64% 701.09% 0.814627 1.374379 0.205936643 57 Std Dev 15.64% 32.36% 25.49711% 2.765436 0.287332 2900.816 0.417722712 58 Min -3.53% -9.80% -5.19% -0.6 -0.05164 -0.21063 -0.085928545 59 Max 2.38% 7.85% 4.43% 1.348358 0.099058 0.196412 0.168543357 60 Correl 0.413611 0.630340323 -0.08114 0.464756 0.512945 0.436983773 61 Beta 0.8559 1.021661028 -1.4264 0.854076 0.112274 1.167457891 62 63 Portfolio beta 0.614349 64 65 Note: the Portfolio beta above is for an equally-weighted portfolio consisting of all the stocks above. 251 251 0.751684222 0.8496 0.431076548 0.46184 -0.073761855 -0.18828 0.081272085 0.132309 0.300998577 0.507807 0.829863502 1.499955 Under Armour Callaway -0.000557414 -0.00145 -0.028695181 0.002906 -0.023836549 0.010619 -0.004519774 -0.00118 -0.046336207 0.032867 1 Date S&P 500 Best Buy Copart GameStop Deere Tesla NETFLIX 2 15-Jun-21 -0.20% -0.68% 0.67% -1.67% 0.007629 -0.02968 -0.015983516 3 14-Jun-21 0.21% -0.37% 0.73% 5.88% -0.01765 0.012789 0.022750987 50 19-Jun-20 -0.55% -1.33% -1.05% 3.99% 0 -0.00304 0.008558028 51 18-Jun-20 0.06% -1.12% -1.06% 2.59% -0.00411 0.01225 0.004689908 52 17-Jun-20 -0.36% -0.28% 2.08% -1.07% -0.01761 0.009825 0.02668929 53 16-Jun-20 54 55 Count 251 251 251 251 251 252 251 56 Average 33.49% 37.49% 40.64% 701.09% 0.814627 1.374379 0.205936643 57 Std Dev 15.64% 32.36% 25.49711% 2.765436 0.287332 2900.816 0.417722712 58 Min -3.53% -9.80% -5.19% -0.6 -0.05164 -0.21063 -0.085928545 59 Max 2.38% 7.85% 4.43% 1.348358 0.099058 0.196412 0.168543357 60 Correl 0.413611 0.630340323 -0.08114 0.464756 0.512945 0.436983773 61 Beta 0.8559 1.021661028 -1.4264 0.854076 0.112274 1.167457891 62 63 Portfolio beta 0.614349 64 65 Note: the Portfolio beta above is for an equally-weighted portfolio consisting of all the stocks above. 251 251 0.751684222 0.8496 0.431076548 0.46184 -0.073761855 -0.18828 0.081272085 0.132309 0.300998577 0.507807 0.829863502 1.499955