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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 6

Historical Returns: Expected and Required Rates of Return
You have observed the following returns over time:
Assume that the risk-free rate is 6% and the market risk premium is 5%.
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 24% of Stock Y? Do not round intermediate calculations. Round your answer to two
decimal places.
%
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