Need help with D$,$E$,$F$,$G$.$ Please show excel equations as well. d$.$ Estimate Goodman's and Landry's betas as the slopes of regression lines with stock returns on the

vertical axis $($y$-$axis$)$ and market return on the horizontal axis $($x$-$axis$).($Hint: use Excel's SLOPE function.$)$

Are these betas consistent with your graph?

Goodman's beta $=$

Landry' beta $=$

e$.$ The risk$-$free rate on long$-$term Treasury bonds is $6\mathrm{.}04\%.$ Assume that the market risk premium is $5\%.$ What is the

expected return on the market? Now use the SML equation to calculate the two companies' required returns.

f$.$ If you formed a portfolio that consisted of $50\%$ Goodman stock and $50\%$ Landry stock, what would be its

beta and its required return?

The beta of a portfolio is simply a weighted average of the betas of the stocks in the portfolio, so this portfolio's beta

would be:

Portfolio beta $=$

g$.$ Suppose an investor wants to include Goodman Industries' stock in his or her portfolio. Stocks A$,$ B$,$ and C

are currently in the portfolio, and their betas are $0\mathrm{.}769,0\mathrm{.}985,$ and $1\mathrm{.}423,$ respectively. Calculate the new

portfolio's required return if it consists of $25\%$ of Goodman, $15\%$ of Stock $A,40\%$ of Stock B$,$ and $20\%$ of

Stock C$.$