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You have observed the following returns over time: Year Stock X Stock Y Market 2015 14 % 15 % 14 % 2016 17 7 10
You have observed the following returns over time: Year Stock X Stock Y Market 2015 14 % 15 % 14 % 2016 17 7 10 2017 -13 -6 -10 2018 4 2 2 2019 23 13 16 Assume that the risk-free rate is 7% and the market risk premium is 6%. 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: 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: % What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of
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