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You have observed the following returns over time: Year Stock X Stock Y Market 2014 16% 14% 13% 2015 17 6 10 2016 -14 -3

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You have observed the following returns over time: Year Stock X Stock Y Market 2014 16% 14% 13% 2015 17 6 10 2016 -14 -3 13 2017 5 1 2018 23 12 Assume that the risk-free rate is 4% and the market risk premium is 3%. 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 de 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 Round your answer to two decimal places

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