Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends.Data as given in the problem are shown below: Bartman Industries Reynolds Inc. Winslow 5000 YearStock PriceDividendHolding period returnStock PriceDividendHolding period returnIncludes Divs.Holding period return2020$17.25$1.1524.75%$48.75$3.00-1.05%11,663.9832.76%201914.751.06-4.18%52.302.9013.23%8,785.701.22%201816.501.0062.79%48.752.75-10.04%8,679.9834.91%201710.750.952.90%57.252.50-0.42%6,434.0314.85%201611.370.9061.02%60.002.2511.66%5,602.2819.05%20157.62 55.75 4,705.97 Assume the risk-free rate on long-term Treasury bonds is 6.04%. Assume also that the average annual return on the Winslow 5000 is 11% as the expected return on the market. Use the SML equation (i.e., CAPM) to calculate the two companies' required returns. Bartman's Required Return Reynolds's Required Return

Divide the amount gained or lost at the end of the year by the initial investment made at the…

Answered: Bartman Industries' and Reynolds Inc.'s…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Bartman Industries' and Reynolds Inc.'s stock prices and dividends, along with the Winslow 5000 Index, are shown here for the period 2015-2020. The Winslow 5000 data are adjusted to include dividends.

Data as given in the problem are shown below:
	Bartman Industries		Reynolds Inc.		Winslow 5000
Year	Stock Price	Dividend	Holding period return	Stock Price	Dividend	Holding period return	Includes Divs.	Holding period return
2020	$17.25	$1.15	24.75%	$48.75	$3.00	-1.05%	11,663.98	32.76%
2019	14.75	1.06	-4.18%	52.30	2.90	13.23%	8,785.70	1.22%
2018	16.50	1.00	62.79%	48.75	2.75	-10.04%	8,679.98	34.91%
2017	10.75	0.95	2.90%	57.25	2.50	-0.42%	6,434.03	14.85%
2016	11.37	0.90	61.02%	60.00	2.25	11.66%	5,602.28	19.05%
2015	7.62			55.75			4,705.97

Assume the risk-free rate on long-term Treasury bonds is 6.04%. Assume also that the average annual return on the Winslow 5000 is 11% as the expected return on the market. Use the SML equation (i.e., CAPM) to calculate the two companies' required returns.