Consider the CEO of the Financial Institution Omega who is employing the Capital Asset Pricing Model $($CAPM$)$ and the Table below in order to obtain financial unbiased estimates of the following financial variables.

YEAR STOCK X STOCK Y MARKET

$201528\%26\%32\%$

$201624\%27\%29\%$

$2017-9\%-8\%-8\%$

$201823\%21\%31\%$

$201925\%25\%35\%$

Assume that the Risk$-$Free rate is $5\%.$

Assist him to calculate the following relationships.

$1.$ Calculate the Expected Returns.

$2.$ Calculate the Variances.

$3.$ Calculate the Risks.

$4.$ What are the betas of stock X and Y respectively?

$5.$ Are stocks X and Y aggressive or defensive stocks?

$6.$ What is the slope of the Security Market Line?

$7.$ What are the required rates of return for Stocks X and Y respectively?

$8.$ Are Stocks X and Y Overvalued or Undervalued?