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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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