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Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2 0 1

Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Year Stock X Stock Y Market
201516%14%10%
201618610
2017-14-7-10
2018512
2019221016
Assume that the risk-free rate is 6% and the market risk premium is 4%.
What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places.
Stock X:
Stock Y:
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:
%
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.
%

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