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You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is %. a. What are

image text in transcribed You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is %. a. What are the betas of Stocks X and Y ? Do not round intermediate calculations. Round your answers to two decimal places. 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 to two decimal places. 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 intermediate calculations. Round your answer to tw decimal places. %

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