You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns: B a. What was XYZ's average historical return? b. Compute the market's and XYZ's excess returns for each year. Estimate XYZ's beta. c. Estimate XYZ's historical alpha. d. Suppose the current risk-free rate is 3%, and you expect the market's return to be 8%. Use the CAPM to estimate an expected return for XYZ Corp.'s stock. e. Would you base your estimate of XYZ's equity cost of capital on your answer in part (a) or in part (d)? a. What was XYZ's average historical return? Data Table XYZ's average historical return was %. (Round to one decimal place.) b. Compute the market's and XYZ's excess returns for each year. (Click on the following icon in order to copy its contents into a spreadsheet.) The market's excess return for 2011 was %. (Round to the nearest integer.) The market's excess return for 2012 was [%. (Round to the nearest integer.) Year 2011 2012 Risk-free Return 3% 1% Market Return 6% -37% XYZ Return 10% - 45% XYZ's excess return for 2011 was %. (Round to the nearest integer.) XYZ's excess return for 2012 was %. (Round to the nearest integer.) Print Done Click to select your answer(s)