You are given the following set of data: Average return, FAVS Standard deviation, a Year 1 2 3 4 Stock X 5 -6 7 % % a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock X's beta coefficient. Do not round intermediate calculations. Round your answer to two decimal places. Historical Rates of Return Stock X b. Determine the arithmetic average rates of return for Stock X and the NYSE over the period given. Calculate the standard deviations of returns for both Stock X and the NYSE. Do not round intermediate calculations. Round your answers to two decimal places. NYSE -26.5% 37.2 23.8 -7.2 6.6 20.5 30.6 NYSE -17.0% 21.0 17.0 2.0 7.6 19.7 18.4 fx=FxAverage FM - FM,Average and both a, and by in the future will equal their c. Assume that the situation during Years 1 to 7 is expected to prevail in the future (i.e., past values). Also assume that Stock X is in equilibrium - that is, it plots on the Security Market Line. What is the risk-free rate? Do not round intermediate calculations. Round your answer to two decimal places. N (

You are given the fotowing set of dath: two decimai places. Nrst. Do not reund intermediate cakclations. Round rour anewrs to tae decimat places. c. Assume that the situation during Vears 1 to 7 is expected to preval in the fuhare (2.6, ix =7x. past values). Also assume that Stock x is in equibonim - that is, it plots on the Security Marke Lre. What is the rikk-free rate? De not round interinedigte calculations. Round your answer to two decimal places. The correct graph is c. Suppose you hold a large, well-dversified portfolio and are considering adding to that pertfolo either Stock X o another stock, stock Y, which has the same beta as 5 tock to theory, vew should