You need to estimate the equity cost of capital for XYZ Corp. You have the following data walale regarding past returns a. What was XYZ's average historical retum? b. Compute the markets and XYZs excess returns for each year. Estimate XYZs beta e. Estimate XYZ's historical alpha d. Suppose the current risk-free rate is 2%, and you expect the marke's return to be 10%. Use the CAPM me an expected retum for XYZ Comp. 'lock .. Would you base your estimate of XYZ's equity cost of capital on your answer in part() or in part a. What was XYZ's average historical return? Data Table XYZ average historical retum was - 22.5% (Round to one decimal place) b. Compute the markets and XYZ's excess returns for each year. (Click on the icon located on the top income of the datatable below in order to copy The market's excess retum for 2011 was 2 (Round to the nearest integer) Escorts into a spreadsheet) Year Market Return XYZ Return The market's excess return for 2012 was - 37 (Round to the nearest integer.) 2011 8% 2012 -35 XYZs excess return for 2011 was 5% (Round to the nearest integer) XYZ excess return for 2012 was -54%. (Round to the nearest integer.) Print Done Estimate XYZ's beta XYZs beta is (Round to two decimal places.) c. Estimate XYZ's historical pha XYZ historicw ipho was I (Round to one decimal place.) d. Suppose the current risk free rate is 2%, and you expect the market's return to be 10%. Use the CAPM to estimate an expected return for XYZ Corp's Mock The expected return for XYZ Corp's stock was % (Round to two decimal places) Would you base your estimate of XYZ's equity cost of capital on your answer in part(a) or in part (d? (Select the best choice below) Click to select your answers