You are given the following set of data"

Year NYSE Stock X

1 -26.5% 14.0%

2 37.2 23

3 23.8 17.5

4 -7.2 2.0

5 6.6 8.1

6 20.5 19.4

7 30.6 18.2

A) Determine Stock X's beta coefficient

B) Determine the arithmetic 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

C) Assume that the situation during Years 1-7 is expected to prevail in the future. Also assume that Stock X is in equilibrium that is it plots on the SML. What is the risk free rate?