You have observed the following returns over time:

Assume that the risk-free rate is 4% and the market risk premium is 2%.

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 two decimal places.

\begin{tabular}{cccc} Year & Stock X & Stock Y & Market \\ \hline 2015 & 16% & 13% & 10% \\ 2016 & 20 & 6 & 8 \\ 2017 & -15 & -3 & -13 \\ 2018 & 4 & 2 & 3 \\ 2019 & 24 & 9 & 15 \end{tabular}