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need help as soon, and I will rate you fx E F G G min 00 OO 8 A B D Historical Returns: Expected &

image text in transcribedimage text in transcribedneed help as soon, and I will rate you

fx E F G G min 00 OO 8 A B D Historical Returns: Expected & Required Rates of Return 2 3 Historical Returns: 4 Year Stock X Stock Y Market 5 2011 13.00% 12.00% 10.00% 6 2012 18.00% 6.00% 8.00% 7 2013 -13.00% -5.00% -10.00% 2014 3.00% 2.00% 2.00% 9 2015 23.00% 12.00% 14.00% 10 11 Risk-free rate, RF 3.00% 12 Market risk premium, RPM 6.00% 13 % of Stock X in Portfolio 80% 14 % of Stock Y in Portfolio 20% 15 16 Stock X Stock Y 17 Beta, bi #N/A 18 Required rate of return, ri #N/A 19 20 Portfolio beta, bp #N/A 21 Required return on portfolio, rp #N/A 22 23 Alternate portfolio return calculation using individual stocks' required returns: 24 Required return on portfolio, re #N/A 25 26 27 Formulas #N/A #N/A Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return A- You have observed the following returns over time: Year Stock x Stock Y Market 10 % 2011 13 % 12 % 2012 18 6 8 2013 -13 -5 -10 2014 3 2 2 N 2015 23 12 14 Assume that the risk-free rate is 3% and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places. 1.49 What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places. 0.75 IA b. What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place. 11.94 % C What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place. 7.5 % 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 one decimal place. 11 %

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