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You have obscrved the following returns over time: YearStock X Stock Y Market 2012 2013 2014 2015 2016 1496 19 16 12% 10 12 13%

You have obscrved the following returns over time: YearStock X Stock Y Market 2012 2013 2014 2015 2016 1496 19 16 12% 10 12 13% 20 15 Assume that the risk-free rate is 6% and the market risk premium is 5%. a. What are the betas of Stocks X and Y? b. What are the required rates of return on Stocks X and Y? c, what is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y

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