finance problem please assist with question. any help is good

J L IFiR 4720-5720 Mona ofFinanoiai institutions D November 2018 Quiz# 11 (10 points) Name: mmmmmmmmm 1. The annual ('36) returns for years 2007-2016 (10-years) for both FecEx stock (FDX) and the NYSE Index are shown below. I have run the regession below to estimate the beta for FOX: YEAR FedEx NYSE INDEX jFDX-MeanNYSE-Meanl 2007 -1 .0396 13.48% 43.28 2008 -16.97 -4.92 251.14 2009 -47.64 -41.11 2654.58 2010 96.64 41.55 3208.43 2011 31]] 12 06 -66. 36 2012 0.96 -0.09 41.85 2013 6.64 9.59 -25.67 2014 36.50 14.04 254.08 201 5 26.04 4.88 13.21 2016 M: E E Mean 11.22% 3.9996 3.1m 637556 Variance 1416. 86 417.11 Covariance 708.40 Std. Dev 37.64 20.42 Ctrreiatim 0921 9918 1.698 Regression 0 utput: Regression Statistics Multiple R 0.921483 R Square 0.34913 Adjusted R_ 0.830272 Standard E_ 15.50743 Observatio 10 ANOVA df 55 MS F ignificance F Regression 1_ 10822.86 10822.86 45.02593 0.000151_ Residual _ 8 1923.844 240.4805 Total 9 12751.7 Coeicientsandard Err: t 5th P-vm'ue Lower 95% Upper 95% ower 95.0%pper 55.0% Intercept 4.448181 5.006206 0.888445 _ 0.400225 -7.0923_ 15 .993 62 32.0923 15.99301r X Variable 1.698338 0.2531 6.210136 0.000151 1.114688 2.281989 1.114688 2.281989 The beta, [3, calculated above for FOX is 1.698, the yield to maturity on a 10-year Treasury Bond (risk free rate) is 3.14%, and the stock market risk pren'iLITI [rm - rrr] is 55%. Calculate the cost of quity capital for FDX, FDX stock's recpired rate of return, usingthe Capital Asset Pricing Model: erx = rrf + [rm - rrdBJ-'nx f'Fox: _______ 95 +55%] _______ =_____& 7 V