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 $3\%.$

a$.$ 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:

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.

$\%$