Year 1 2 3 Historical Rates of Return NYSE Stock X -26.5% -10.0% 37.2 2.0 23.8 15.0 -7.2 4.0 6.6 11.4 20.5 15.9 30.6 4 16.9 a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places. Stock X NYSE Average return, Aug % % Standard deviation, o % % C. Assume that the situation during Years 1 to 7 is expected to prevail in future (i.e., fx = 7 x Average ,fm = 1 M Average and both Ox and bx in the future will equal their past values). Also assume that Stock X is in equilibrium - that is, it plots on the Security Market Line. What is the risk-free rate? Do not round intermediate calculations. Round your answer to two decimal places. % d. Plot the Security Market Line. Choose the correct graph. The correct graph is -Select- A B C (%) 45 45 45 40 40 35 35 30 30 401 35 301 25 20 25 25 20 15 20 15 151 10+ 10 10 5 5 5 +++++++++++++ -0.551 0.5 1 1.5 2 2.5 3 3.5 4 Beta -0.55 0.5 1 1.5 2 2.5 3 3.5 4 Beta -0.55 0.5 1 1.5 2 2.5 3 3.5 4 Beta 3 D (%) 45 40 35 30 25 20 157 10 51 -0.551 0.5 1 1.5 2 2.5 3 3.5 4 Beta