Historical Returns: Expected and Required Rates of Return

You have observed the following returns over time:

Year	Stock X		Stock Y		Market
2017	14	%	13	%	11	%
2018	19		6		8
2019	-15		-3		-12
2020	4		3		2
2021	24		9		17

Assume that the risk-free rate is 4% and the market risk premium is 2%.

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.

%