4. The Excel file Stock Data contains monthly data for Stock A and the S&P 500 Index (i.e. the market. Assume the risk free rate of return is 4%. a. Compute the monthly returns for Stock A and the S&P 500. b. Compute the average monthly return for StockAand the S&P 500. c. Compute the annualized return for Stock A and the S&P 500. d. Compute the annual risk of Stock A and the S&P 500. e. Compute Beta for Stock A using the Covariance/Variance relationship. f. Compute the equation: R oo A a +BSTooxARwom and include the R and the t-statistics for the equation and its coefficients g. Are the Betas computed in part e and part f the same value? h. Plot the monthly returns on a graph. On this graph include a trendline, the computed equation, and the R value. Label the axes and include a title for the graph i. What is the technical name for this equation? What does measure? k. What does B measure? What is the Beta for Security A? m. What is the Beta for the S&P 500 n. What are the t-statistics for a and B? o. Are either of these statistics Significant? p. Compute the cost of equity required rate of return) for Stock A using the classic CAPM. Also, explain how you determined the cost of equity. q. Compute the tax-adjusted cost of equity (required rate of return) for Stock A if the corporate tax rate is 35%. r. Compute the Weighted Average Cost of Capital (WACC) for Stock A u g the classic CAPM if the corporate tax rate is 35%, the cost of debt is 20% and the capital structure is: 80% equity and 20% debt