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solve with financial calculator 7-21 You are given the following data: Security Market Line Historical Rates of Return NYSE Stock X Year (26.5)% (14.01 37.2

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solve with financial calculator

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7-21 You are given the following data: Security Market Line Historical Rates of Return NYSE Stock X Year (26.5)% (14.01 37.2 23.0 23.8 17.5 (7.2) 6.6 8.1 20.5 19.4 30.6 182 From the above data, assume that you calculated Stock X's beta coefficient to and the N e ther a. Determine the arithmetic average rates of return for Stock period given. Calculate the standard deviations of returns for both the NYSE. h e b. Assuming (1) that the situation during Years 1 to 7 is expected to hold t Cie., fx = Pxf iy and both oy and by in the future will equal their pasta (2) that Stock X is in equilibrium (ie, it plots on the Security Market Line risk-free rate? C. Plot the Security Market Line. the d. Suppose you hold a large, well-diversified portfolio and are considering portfolio either Stock X or another stock, Stock y that has the me a higher standard deviation of returns. Stocks X and Y have the same that is, Py = fy - 10.6%. Which stock should you choose Sa Spreadsheet Problem Model in Chan with the martial model in the file Cho P15 Build

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