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eBook Historical Returns: Expected and Required Rates of Return You have observed the following returns...

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eBook Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2014 16% 12% 10% 2015 19 8 2016 -14 -7 -10 2017 4 2 1 2018 23 10 17 Full Assume that the risk-free rate is 7% and the market risk premium is 5 %. a. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: Stock Y: b. What are the required rates of return on Stocks X and Y? Do not round intermediate calculations. Round your answers t to two decimal places. Stock X: 9% Stock Y: c. What is the required rate of return on a portfolio consisting of 80% of Stock X and 20 % of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places

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