$13.$Problem $2-14($Historical Returns: Expected and Required Rates of Return$)$

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Historical Returns: Expected and Required Rates of Return

You have observed the following returns over time:

YearStock XStock YMarket$201716\%14\%10\%2018197112019-16-2-1320205312021211315$

Assume that the risk$-$free rate is $7\%$ and the market risk premium is $5\%.$

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:

What are the required rates of return on Stocks X and Y$?$ Do not round intermediate calculations. Round your answers to two decimal places.

Stock X: $\%$

Stock Y: $\%$

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 two decimal places.

$\%$