Question: Problem 7-04 Based on five years of monthly data, you derive the following information for the companies listed: Company a; (Intercept) Oi riM Intel 0.20

 Problem 7-04 Based on five years of monthly data, you derive

Problem 7-04 Based on five years of monthly data, you derive the following information for the companies listed: Company a; (Intercept) Oi riM Intel 0.20 13.00 % 0.69 Ford 0.11 14.40 0.37 Anheuser Busch 0.15 7.50 0.66 Merck 0.06 9.70 0.80 S&P 500 0.00 5.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Intel: Ford: Anheuser Busch: Merck: b. Assuming a risk-free rate of 9 percent and an expected return for the market portfolio of 13 percent, compute the expected (required) return for all the stocks. Do not round intermediate calculations. Round your answers to two decimal places. Intel: % Ford: % Anheuser Busch: % Merck: %

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