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Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Assume that the risk-free rate is 4% and the

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Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Assume that the risk-free rate is 4% and the market risk premium is 2%. a. What are the betas of Stocks X and Y ? Do not round intermediate calculations, flound your answers to two decimal places. Stock X: Stock Y : b. What are the required rates of retum 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 5 tock Y ? Do not round intermediate calculations, Round your answer to two decimal places

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