Historical Returns: Expected and Required Rates of Return

You have observed the following returns over time:

Year	Stock X		Stock Y		Market
2015	15	%	12	%	13	%
2016	21		8		12
2017	-14		-7		-11
2018	4		3		2
2019	19		10		14

Assume that the risk-free rate is 5% and the market risk premium is 4%.

1. 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:

2. 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: %

3. 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.

   %