provide a step by step answer not in excel

You have observed the following returns over time:

Year Stock X Stock Y Market

1998 14% 13% 12%

1999 19 7 10

2000 16 5 12

2001 3 1 1

2002 20 11 15

Assume that the risk-free rate is 6 percent and the market risk premium is 5 percent.

a. What are the betas of Stocks X and Y?

b. What are the required rates of return for Stocks X and Y?

c. What is the required rate of return for a portfolio consisting of 80 percent of Stock X and 20 percent of Stock Y?

d. If Stock Xs expected return is 22 percent, is Stock X under- or overvalued?