You need to estimato the equity cost of capital for XYZ Corp. You have the following data avaithble regarding past returns: a. What was XYZ's average historical return? b. Compute the market's and XYZ's excess returns for each year. Estimate XYZ's beta. c. Estimate XYZ's historical alpha. d. Suppose the current risk-free rate is 3%, and you expect the marker's return to be 10%, Use the CAPM to estimate an expected return for XYZ Corp.'s stock. e. Would you base your estimate of XYZ's equity cost of capital on your answer in part (a) or in part (d)? a. What was XYZ 's average histocical return? XYZ's awerage historical return was \%. (Round to one decimal place.) b. Compute the market's and XYZ's excess returns for each year: The markel's excess retum for 2007 was \%. (Round to the nearest integer.) The marker's excess return for 2008 was \%. (Round to the nearest integer.) XYZ's excess return for 2007 was \%. (Round to the nearest integoc). XYZs excoss return for 2008 was \%. (Round to the nearest integer.) Estimate XYZ 's beta. XYZ's beta is (Round to two decimal places.) c. Estimate XYZ's historical alpha. XYZs historical alpho was \%. (Round to two decimal places.) Data table byZ's avera. b. Compute The market's The market's XYZ's exces XYZ's exces Estimate XY XYZs beta if XYZ's historical alpha was \%. (Round to two decimal places.) d. Suppose the current risk-free rate is 3%, and you expect the market's return to be 10%. Use the CAPM to estimate an expected return for XYZ Corp.'s s The expected return for XYZ Corp.'s stock was \%. (Round to two decimal places.)