You need to estimate the equity cost of capital for XYZ Corp. You have the folcoing data araiable tegarding past returns: a. What was XYZsaveragehistoricalreluata? b. Compute the market's and XYZ 's excess retums for each year, Fistimate XYZ a beta. c. Estimate XYZ 's histarical alpha. d. Suppose the current risk-free rate is 4%, and you expect the market's rotum to be 9%. Uso the CAPM to esimate an expectad relum for XYZ Comp, ix atock. 0. Would you base your estimate of XYZ's equity cost of cepltal on your answar in part (a) or in part (d)? a. What was XYZ3 average historicai relum? XYZ's average historical return was 5 s. (Round to one docimal place.) b. Compote the macket's and XYZ's excess retums for each year. The markets excess retum for 2007 was 5. (Round to the noavest integer.) The markefs excess fetum for 2008 was 1%. (Round to the noarest integer.) XYZs excess rotum for 2007 was 16. (Round to the nearest integer.) XYZs excess rotum for 2004 was 16. (Round to the nearest intoger-) Estimate XYZa beta. XYZ's beta is (Round to two decimal places?) c. Estimate XYZ's tislorical alpha: XYZ's historical alpha was he. (Round to two decimal places) d. Suppose the current risk-free rate is 4%, and you expect the market's resum to be 9%. Use the CAPM to essimate an expected raturn for XYZ Corp.' stock. The expected retum for XYZ Corpisstock was its. (Round to tho decimal places.) 6. Would you base your estimate of XYZ's efaity cost of capital on your answer in part (a) or in part (d)? (Salect the best choico below.)