You have observed the following returns over time:

Year	Stock X	Stock Y	Market
2009	14%	13%	12%
2010	19%	7%	10%
2011	-16%	-5%	-12%
2012	3%	1%	1%
2013	20%	11%	15%

Assume that the risk-free rate is 6% and the market risk premium is 5%.

a. What are the betas of Stocks X and Y?

b. What are the required rates of return on Stocks X and Y?

c. What is the required rate of return on a portfolio consisting of 80% of Stock X and

20% of Stock Y?