C$9$ Evaluating Risk and Return $***$ PLEASE ANSWER ACCORDING TO EVERYTHING THAT NEEDS TO BE ANSWERED$/$ CORRECTED ON THE PICTURE TO GET A POSITIVE FEEDBACK $***$Bartman Industries's and Reynolds Inc.$\text{'}$s stock prices and dividends, along with the Winslow $5000$ Index, are shown here for the period $2015-2020.$ The Winslow $5000$

data are adjusted to include dividends.

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round

intermediate calculations. Use a minus sign to enter negative values, if any.

a$.$ Use the data to calculate annual rates of return for Bartman, Reynolds, and the Winslow $5000$ Index. Then calculate each entity's average return over the $5-$year

period. $($Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the

capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of

return for $2015$ because you do not have $2014$ data.$)$ Round your answers to two decimal places.

b$.$ Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow $5000.($Hint: Use the sample standard deviation formula, which

corresponds to the STDEV.S function in Excel.$)$ Round your answers to two decimal places.

c$.$ Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow $5000.$ Round your answers to two decimal places.

Bartman Industries Reynolds Inc. Winslow $5000$

d$.$ Assume the risk$-$free rate during this time was $3\%.$ Calculate the Sharpe ratios for Bartman, Reynolds, and the Index over this period using their average returns.

Round your answers to four decimal places.

Sharpe ratio

f$.$ Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's returns. Round your answers to four decimal places.

Bartman's beta:

Reynolds's beta:

g$.$ Assume that the risk$-$free rate on long$-$term Treasury bonds is $4\mathrm{.}5\%.$ Assume also that the average annual return on the Winslow $5000$ is not a good estimate of

the market's required return$-$it is too high. So use $10\%$ as the expected return on the market. Use the SML equation to calculate the two companies' required

returns. Round your answers to two decimal places.

Bartman's required return:

Reynolds's required return

h$.$ If you formed a portfolio that consisted of $50\%$ Bartman and $50\%$ Reynolds, what would the portfolio's beta and required return be$?$ Round your answer for the

portfolio's beta to four decimal places and for the portfolio's required return to two decimal places.

Portfolio's beta:

Portfolio's required return:

Suppose an investor wants to include Bartman Industries's stock in his portfolio. Stocks A$,$ B$,$ and C are currently in the portfolio, and their betas are $0\mathrm{.}688$

$0\mathrm{.}921,$ and $1\mathrm{.}597,$ respectively. Calculate the new portfolio's required return if it consists of $20\%$ of Bartman, $20\%$ of Stock A$,40\%$ of Stock B$,$ and $20\%$ of Stock

C$.$ Round your answer to two decimal places.