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You have observed the following returns over time: Year Stock X Stock Y Market 2011 14 % 11 % 10% 2012 19 5 9 2013

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You have observed the following returns over time: Year Stock X Stock Y Market 2011 14 % 11 % 10% 2012 19 5 9 2013 -13 -7 -10 2014 2 1 2 2015 20 10 12 Assume that the risk-free rate is 3% and the market risk premium is 6%. The data has been collected in the Microsoft Excel Online nle below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the beta of Stock X? Do not round Intermediate calculations. Round your answer to two decimal places. 1.52 What is the beta of Stock Y? Do not round Intermediate calculations. Round your answer to two decimal places. .52 b. What is the required rate of return on Stock X? Do not round Intermediate calculations. Round your answer to one decimal place. 5.4 % What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place. 3,8 % 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 calculations. Round your answer to one decimal place. 5.1 %

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