Ch 02: Assignment-Risk and Return: Part I 19. Problem 2-14 (Historical Returns: Expected and Required Rates of Return) B eBook Historical Returns: Expected and Required Rates of Return: You have observed the following returns over time: Year 2014 Stock X Stock Y Market 16% 15% 14% 2015 21 6 2016 -18 -5 -10 2017 2016 2 201 1 11 2 17 Assume that the risk-free rate is 5% and the market risk premium is 3%. a. What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock XI 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 round intermediate calculations. Round your answer to two decimal places