Use to following returns to calculate the correlation between returns of the Stock Y and NYSE. Also calculate the beta for Stock Y and graph the characteristic line. Once you have calculated the beta for Stock Y use the CAPM to determine the expected return on HP stock. Assume a risk free rate of 2% and a long run market return of 10%

Stock Y NYSE

3% 4%

16.2 14.3

9.1 19

-6 -14.7

-12.3 -26.5

33.1 37.2

6.1 23.8

7.2 -7.2

14.8 6.6

22.1 20.5

20 30.6

Use to following returns to calculate the correlation between returns of the Stock Y and NYSE. Also calculate the beta for Stock Y and graph the characteristic line. Once you have calculated the beta for Stock Y use the CAPM to determine the expected return on HP stock. Assume a risk free rate of 2% and a long run market return of 10% Stock Y 3% 16.2 9.1 -6 -12.3 33.1 6.1 7.2 14.8 22.1 20 NYSE 4% 14.3 19 -14.7 -26.5 37.2 23.8 -7.2 6.6 20.5 30.6