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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
| 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%. What are the betas of Stocks X and Y? I know the answers are x = 1.3471, y = 0.6508. I need help how to get to those answers please (step-by-step). Thank you! | ||||||
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