1. Stock X has a beta of 1.40 and stock Y has a beta of 0.80. Assume the appropriate risk-free rate is 3.0% and the appropriate market risk premium is 8.0%. Over the past five years, stock X has had an average return of 15.10%, with a standard deviation of 51%, and stock Y has had an average return of 9.85%, with a standard deviation of 38%. 4 pts a. What is the expected return for stock Y? b. What would be the beta and the expected return of a portfolio in which the investment in stock Y is twice as much as the investment in stock X? What is the abnormal return (alpha) on stock X? C