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You have the following sample of data. Market Return -29.7 Year 1 2 3 Stock X 4.3 9.1 31.6 -11.5 25,8 -9.7 4 5 6

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You have the following sample of data. Market Return -29.7 Year 1 2 3 Stock X 4.3 9.1 31.6 -11.5 25,8 -9.7 4 5 6 7 Stock Y 5.5 7.4 10.3 3.6 -2.0 1.7 5.8 12.9 15.4 9.6 -6.2 8.5 11.6 13.7 5.4 -72 10,5 12.0 17.3 26.3 27.3 4,5 13.6 8 9 10 Suppose the risk-free rate of retum is 5%, the market risk premium is 4% a. Calculate the average rate of return for the market return, Stock X, and Stock y (4 points) b. Calculate the standard deviation of the rate of return for the market return, Stock X, and Stock Y. (4 points) c. Calculate the correlation between Stock X and the market return, between Stock Y and the market return. (4 points) d. Calculate the beta for Stock X and Stock Y. Calculate the required rate of return for Stock X and Stock Y. Are they underperformed or overperformed? (4 points) c. Construct a portfolio including 50% of Stock X and 50% of Stock Y. Calculate the portfolio's average rate of retur, standard deviation, and beta (4 points)

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