You have observed the following returns over time:YearStock XStock YMarket$20180\mathrm{.}140\mathrm{.}130\mathrm{.}1220190\mathrm{.}190\mathrm{.}070\mathrm{.}12020-0\mathrm{.}16-0\mathrm{.}05-0\mathrm{.}1220210\mathrm{.}030\mathrm{.}010\mathrm{.}0120220\mathrm{.}20\mathrm{.}110\mathrm{.}15$Assume that the risk$-$free rate is $6\%$ and the market risk premium is $5\%.$ Assume that the covariance COVrx,rm$)$ is $0\mathrm{.}016$ and the covariance COV$($ry$,$m$)$ is $0\mathrm{.}0078.$COV $($ra Tm$)$Bi $=$VAR $($rm$)$a$.$ Calculate the variance of the market return VAR$($rm$).$b$.$ Calculate the betas of Stock X and Stock Y$.$ Which stock is more volatile? Why?c$.$ Calculate the required returns on Stocks X and Y using CAPM.d$.$ If an investor creates a portfolio consisting of $80\%$ of stock X and $20\%$ of stock Y$,$ would the share risk premium be greater than, equal to$,$ or less than the share risk premium of Stock X$?$ Why? Calculations are not required.