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Ch 02: Assignment - Risk and Return: Part 1 You have observed the following returns over time: Stock X 16% Stock Y 11% Market 14%

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Ch 02: Assignment - Risk and Return: Part 1 You have observed the following returns over time: Stock X 16% Stock Y 11% Market 14% Year 2014 2015 2016 2017 2018 Assume that the risk-free rate is 0% and the market risk premium is 5%. 1. What are the betos 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 to two decimal places Stock X: 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 found intermediate calculations. Round your answer to two decimal places

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