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Please answer 10. Problem 6-14 (Historical Returns: Expected and Required Rates of Return) Historical Returns: Expected and Required Rates of Return You have observed the

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10. Problem 6-14 (Historical Returns: Expected and Required Rates of Return) Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is 4%. a. What are the betas of Stocks X and Y ? Do not round intermediate calculations. Round your answers to two decimal pla Stock X: Stock Y: b. What are the required rates of return on Stocks X and Y ? Do not round intermediate calculations. Round your answers Stock X: % 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 inter Round your answer to two decimal places. %

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