Excel Online Structured ctivity: Historical Return: Expected and required Rates or keturn You have observed the following returns over time: Year Stock X Stock Y Market 2011 14 % 14 % 11 % 2012 20 6 8 2013 -12 -5 -11 2014 4 1 1 2015 20 10 16 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 analysis to answer the questions below. X Open spreadsheet a. What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places. X 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. % Check My Work Reset Problem MI X fx 1 Historical Returns: Expected & Required Rates of Return 2 3 Historical Returns: 4 Year Stock X Stock Y 5 2011 6 2012 7 2013 8 2014 9 2015 10 11 Risk-free rate, TRF 12 Market risk premium, RPM 13 % of Stock X in Portfolio 14 % of Stock Y in Portfolio 15 16 Stock X Stock Y 17 Beta, b #N/A 18 Required rate of return, r #N/A 19 20 Portfolio beta, bp #N/A 21 Required return on portfolio, rp #N/A 22 23 Alternate portfolio return calculation using individual stocks' required returns: 24 Required return on portfolio, rp #N/A 25 26