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You are given the following set of data: HISTORICAL RATES OF RETURN NYSE Stock X Year 1 - 26.5% 37.2 2 11.0% 25.0 11.0 3

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You are given the following set of data: HISTORICAL RATES OF RETURN NYSE Stock X Year 1 - 26.5% 37.2 2 11.0% 25.0 11.0 3 23.8 - 7.2 6.0 7.1 5 6.6 20.5 18.6 7 30.6 19.9 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. 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. NYSE Stock X 9.45 % Average return. Ang Standard deviation, 9.07% 22.63 % 11.95 % C. Assume that the situation during Years 1 to 7 is expected to prevail in the future (le.fx - Tx Arrojo FF M Average and both o, and by 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. 9.84

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