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Stock X and the market have had the following rates of returns over the past four years. Year 1 Stock X 12.00% 5.00% 11.00% 2

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Stock X and the "market" have had the following rates of returns over the past four years. Year 1 Stock X 12.00% 5.00% 11.00% 2 Market 13.80% 1.65% 13.70% -2.7296 3 4 -7.00% 62% of your portfolio is invested in Stock X and the remaining 38% is invested in Stock Y. The risk-free rate is 5.24% and the market risk premium is also 5.24%. You estimate that 14.11% is the required rate of return on your portfolio. What is the beta of Stock Y? a. 2.41 b. 2.88 c.2.91 d. 2.76 e. 2.82

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