Business, 20.02.2020 19:32 edwrads4044

You have observed the following returns over time: Year Stock X Stock Y Market 2015 14% 13% 12% 2016 19 7 10 2017 −16 −5 −12 2018 3 1 1 2019 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 8% of Stock X and 20% of stock Y?

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