You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns a. What was XYZ's average historical return? b. Compute the markets and XYZS Oss returns for each your Estimate XYZ's beta c. Esta XYZ historical alpha d. Suppose the current risk.free rate is 4%, and you expect the market's rebum to be 8%. Use the CAPM to estimate an expected return for XYZ Corps stock . Would you base your estimate of XY2's equity cost of capital on your answer in part (a) or in part (di? a. What was XYZ's average historical return? XYZ's average historical return was ) (Round to one decimal place) Data Table b. Compute the markets and XYZ oss returns for each year, The markers excess ritum for 2017 was Round to the heart integer) Click on the following icon in order to copy its contents into a spreadsheet) The manera excess return for 2012 was Round to the neamet integer) Year Risk.free Return Market Return XYZ Return 2 79 12% XYZ's excess motum for 2017 was (Round to the nearest integer) 2012 19 -37% XY2s excess retum for 2012 w I (Round to the nearest integer) Print Done Estime XYZ beta XYZ detais (Round to two decimal places) c. Estimale XY2's historical whe XY2shal alpha was % (Round to one decimal pace) 2011 38% Click to set your answert). Estimate XYZ's beta XYZxbeta (Round to two decimal plans.) c. Estimate XYZ's historical woba XYZ historic alpha was % (Round to one decimal place.) d. Suppose the current risk tree rate is 4%, and you expect the maria's return to be 8% Use the CAPM to estimate an expected retum for XYZ Corps stock The expected return for XYZ Corp's stock was % (Round to two decimal places) . Would you base your estimate of XYZ's equity cont of capital on your answer in part (n) or in partid17 (Select the best choice below) O A. Pan (a) because the CAPM provides a better estimate of expected returns OB, Part (d) because the average post returns provides a better estimate of expected retums, OC Part (d) because the CAP provides a better estimate of expected returns OD. Put (a) because the average past returns provides a better state of expected retunt. Click to select your answers) A PDF Q G Search or type URL $ # 3 5 2 W E R H S D NO V N B Z