You run a regression of XYZ stock's returns against the market returns over a five-year time period (using monthly data) and come up with the following output:

Intercept = .20%

Slope = 1.20

Your stock had an annualized standard deviation of returns of 40% whereas the market standard deviation was only 20%. The riskfree rate, on average, over the last five years has been 6% and it is currently at 7%. The annualized dividend per share currently is $2.00 and the stock is currently selling for $50 (There are 100,000 share outstanding)

a. Evaluate the performance of XYZ over the five-year time period of your analysis. Did it do better or worse than expected (using the CAPM)? If so, how much better or worse did it do than expected?