historical returns: Expected and required rates of return You have observed the following eturns over time: 7% year Stock X Stock Y Market 2008 8% 9% 2009 12% 9% 8% 2010 16 --5 -12 2011 3 1 1 2012 20 11 15 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? b. What are the required rates of return on Stocks X and Y? c. What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? d. If Stock X's expected return is 22%, is Stock X under-or overvalued