See below for information on Ralph's Transmission Fabricators (RTF).

 

a. Draw the SML for each of the following conditions:

(1) RFR = 7%, Rm(proxy) = 11%

(2) Rz = 5%, Rm(true) = 14%

b. Using the information below for the last six periods, calculate and compare the betas using each index.

c. If the current period return for the market is 11.5% and for RTF it is 10%, are superior results being obtained for either index beta?

Could you please help me on Excel with Excel formulas ? (regression)

	Rates of Return
Period	RTF	Proxy Specific Index	True General Index
1	30.0%	13.0%	16.0%
2	13.0%	11.0%	14.0%
3	-13.0%	-10.0%	-9.0%
4	18.0%	15.0%	19.0%
5	20.0%	26.0%	29.0%
6	-6.0%	-11.0%	0.0%

Answer rating: 100% (QA)

Certainly I can provide you with guidance on how to perform the calculations using Excel formulas Please follow the instructions below a Drawing the S... View the full answer