Question: Please show formulas and if you can an excel spreadsheet. 2. Calculate the Beta of each security's returns to the Market returns from the table

Please show formulas and if you can an excel spreadsheet.

2. Calculate the Beta of each security's returns to the Market returns from the table below Security A Security B Market Year Returns Returns Returns 1 6.00% 11.00% 10.00% 2 5.00% 8.60% 8.50% 3 1.00% 8.20% 7.00% 4 0.00% -3.00% -2.00% 5 -2.00% -7.00% -3.40% 6 5.00% 9.00% 8.25% 7 7.00% 13.90% 14.00% 3. Assume the risk free rate = 2.5% and using the betas from above and market returns from the above table, calculate the following: a. Security Market Line for security A b. Security Market line for security B c. Security risk premium of security A d. Security risk premium of security B

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