Looking for worked out/step by step solution to chapter 8 problem 22. Having problems figuring out what plugs in where in the problems. Fundamentals of financial management 14th edition

HENSIVE SPREADsHEET PROBLEM 8-22 EVALUATING RISK AND RETURN Bartman and Reynolds Inc.'s stock along with the Winslow 5000 Index, are here for the 2009-2014. The 5000 data are adjusted to include dividends. 5000 Bartman Industries Reynolds Winslow Year Stock Price Dividend Stock Price Dividend Includes Dividends $1.15 $1166398 $17.25 8.67998 2012 57.25 10.75 2.00 4,705.97 762 a. Use the data to calculate annual rates of return for Bartman. nolds, and the Winslow 5000 Index. Then calculate entity's average retum over the 5-year a Hinti 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 in or loss, and dividing the result by the beginning price. Assume that dividends already included in the index. you cannot calculate the rate of return because you do not have 2008 data.) b. Calculate the standard deviations of the returns for Bartman, Reynolds, and the Winslow 5000. (Hint: Use the sample standard deviation formula, Equation 82a in this chapter, which corresponds to the STDEV function in Excel.) c. Calculate the coefficients of variation for Bartman, Reynolds, and the Winslow 5000 d. Construct a scatter diagram that shows Bartman's and Reynolds's returns on the vertical axis and the Winslow 5000 Index's returns on the horizontal axis. e. Estimate Bartman's and Reynolds's betas by running regressions of their returns against the index's returns. (Hint: Refer to Web Appendix 8A) Are these betas consistent with your graph? f Assume that the risk-free rate on long-term Treasury bonds is 6.04%. Assume a that the average annual return on the Winslow 5000 i good estimate of the marke the SML equation is too high. So use 11% as the expected return on market. Use g. If you formed a to calculate the two companies required returns. would the portfolio that consisted of 50% Bartman and 50% Reynolds, what portfolio's beta and required return be? h. Suppose an investor wants to include Bartman Industries's stock in his portfolio. stocks A, B, and Care currently in the portfolio; and their betas are o 09s respectively. Calculate the of Bartman, 15% of Stock portfolio's required return if it consists of 25% A, 40% of Stock and 20% of Stock C