Question: PLEASE SHOW YOUR WORK PROBLEM 5 Consider the following table, which gives historical returns on two stocks and the market: Year Market Stock A return

PLEASE SHOW YOUR WORK PROBLEM 5 Consider the following table, which gives historical returns on two stocks and the market: Year Market Stock

PLEASE SHOW YOUR WORK

PROBLEM 5 Consider the following table, which gives historical returns on two stocks and the market: Year Market Stock A return Stock B return Return 2019 .10 .16 .11 2020 .15 .22 .14 2021 .17 .28 .17 Assume that the returns above can be used to estimate distribution of future returns. a. (2 MARKS) What are the expected rates of return on each stock and the market? b. (5 MARKS) What are the betas of stocks A and B

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