Historical Returns: Expected and Required Rates of Return You have observed the following returns over time:

Year	Stock X	Stock Y	Market
2011	15 %	12 %	13 %
2012	21 %	8%	9 %
2013	-17 %	-7 %	-14 %
2014	2%	3 %	2 %
2015	22 %	10 %	14 %

Assume that the risk-free rate is 4% and the market risk premium is 7%. Do not round intermediate calculations.

a) What is the beta of Stock X? Round your answer to two decimal places.

What is the beta of Stock Y? Round your answer to two decimal places.

b) What is the required rate of return on Stock X? Round your answer to one decimal place.

What is the required rate of return on Stock Y? Round your answer to one decimal place.

c) What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Round your answer to one decimal place.