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(6-14) Historical Returns: Expected and Required Rates of Return Y ou have observed the following returns over time Stock Y 13% Year 2009 2010 2011 2012 2013 Stock X 14% 19 16 Market 12% 10 12 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5% 1. 2. 3. What are the betas of Stocks X and Y? What are the required rates of return on Stocks X and Y? What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y