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ou have observed the following returns over time: Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return

You have observed the following returns over time:

answer the questions below.

Open spreadsheet

a$.$ What is the beta of Stock X$?$ Do not round intermediate calculations. Round your answer to two decimal places.

What is the beta of Stock Y$?$ Do not round intermediate calculations. Round your answer to two decimal places.

b$.$ What is the required rate of return on Stock X$?$ Do not round intermediate calculations. Round your answer to one decimal place.

$\%$

What is the required rate of return on Stock $Y?$ Do not round intermediate calculations. Round your answer to one decimal place.

$\%$

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 one decimal place.

Year Stock X Stock Y Market

$201112\%14\%10\%$

$20121779$

$2013-14-3-11$

$2014222$

$2015201112$

Assume that the risk$-$free rate is $5\%$ and the market risk premium is $6\%.$ The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

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