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Market Stock X 14% Stock Y 11% 10% 19 5 9 Year 2014 2015 2016 2017 2018 5 -5 2 9 -12 1 12 19

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Market Stock X 14% Stock Y 11% 10% 19 5 9 Year 2014 2015 2016 2017 2018 5 -5 2 9 -12 1 12 19 Assume that the risk-free rate is 4% and the market risk premium is 3%. . What are the betas of Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places 2.15 Stock X: Stock Y: 1.1 b. What are the required rates of return on Stocks X and Y? Do not rolund Intermediate calculations, Round your answers to two decimal places. Stock XI 1 Stock Y c. 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

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