Question
You have observed the following returns over time: Year Stock X Stock Y Market 2011 15 % 11 % 11 % 2012 17 5 9
You have observed the following returns over time:
Year | Stock X | Stock Y | Market | |||
2011 | 15 | % | 11 | % | 11 | % |
2012 | 17 | 5 | 9 | |||
2013 | -17 | -6 | -10 | |||
2014 | 2 | 2 | 1 | |||
2015 | 23 | 10 | 14 |
Assume that the risk-free rate is 4% and the market risk premium is 6%.
What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places.
fill in the blank 2
What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places.
fill in the blank 3
What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place.
fill in the blank 4 %
What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place.
fill in the blank 5 %
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 one decimal place.
fill in the blank 6 %
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