Question: I want an answer to the comprehensive/ spreadsheet problem for Question 8-22 chapter 8 of the Fundamentals of financial management book 14th edition? Bartman industries

I want an answer to the comprehensive/ spreadsheet problem for Question 8-22 chapter 8 of the Fundamentals of financial management book 14th edition?

Bartman industries Reynolds Inc. Winslow 5000
Year Stock price dividends stock price dividends Includes dividends
2014 $17.25 $1.15 $48.75 $3 $11,663.98
2013 14.75 1.06 52.3 2.9 8785.7
2012 16.50 1 48.75 2.75 8679.98
2011 10.75 0.95 57.25 2.5 6434.03
2010 11.37 0.9 60 2.25 5602.28
2009 7.62 0.85 55.75 2 4705.97
Q.A Use the data to calculate annual ratres of return for Bartman, Reynolds, and the Winslow 5000 index.
Then calculate each entity's average return over the 5-year period.

Q.B Calculate the standrard deviation for Bartman, Reynolds, and the Winslow 5000.

Q.C Calculate the coefficient of variation for Bartman, Reynolds, and the Winslow 5000.

Q.D Construct a scatter diagram that shows Bartman's and Reynold's returns on the vertical axis
and the Winslow 5000 Index's returns on horizontal axis.

Q.E Estimate Bartman's and Reynold's betas by running regressions of their returns against the index's returns.
Are these betas consistent with your graph.

Q.F Assume that the risk-free rate on long-term Treasury bonds is 6.04% . Assume also that the average annual return
on the Winslow 5000 in NOT a good estimate of the maerket's required return- it is too high.
So use 11% as the expected return on the market. Use the SML equation to calculate the two companies' required returns.

Q.G If you formed a portfolio that consisted of 50% Bartman and 50% Reynolds, what would the porfolio's beta and required return be?

Q.H Suppose an investor wants to include Baetman Industries's stock in his portfolio. Stock A, B, and C are currently in the portfolio; and their betas are 0.769, 0.985, and 1.423, respectively.
Calculate the new portfolio's return if it consist of 25% of Bartman, 15 % of stock A, 40% of stock B, and 20 % of stock C.

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