Excel Online Structured Activity Historical Return Expected and Required Rates of Return You have observed the following returns over time Year Stock X Stock Y Market 2011 12 14 13 2012 18 6 11 2013 15 3 10 2014 2 1 1 2015 22 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 file below Open the spreadsheet and perform the required analysis to answer the questions below What is the beta of Stock X Do not round intermediate calculations Round your answer to two decimal places What is the beta of Stock Y Do not round intermediate calculations Round your answer to two decimal places What is the required rate of return on Stock X Do not round intermediate calculations Round your answer to one decimal place What is the required rate of return on Stock Y Do not round intermediate calculations Round your answer to one decimal place 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 D E m F Historical Returns Expected Required Rates of Return Historical Returns Year 2011 2012 2013 2014 2015 Stock X 12 00 18 00 15 00 2 00 22 00 Stock Y 14 00 6 00 3 00 1 00 10 00 Market 13 00 11 00 10 00 1 00 12 00 Risk free rate, PRF Market risk premium, RPM of Stock X in Portfolio of Stock Y in Portfolio 3 00 6 00 80 20 Stock X Stock Y Beta, b Required rate of return, n N A N A Formulas N A N A Portfolio beta, bp Required return on portfolio, rp N A N A Alternate portfolio return calculation using individual stocks' required returns Required return on portfolio, p N A

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Question: Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y

Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return

You have observed the following returns over time:

Year	Stock X		Stock Y		Market
2011	12	%	14	%	13	%
2012	18		6		11
2013	-15		-3		-10
2014	2		1		1
2015	22		10		12

Excel Online Structured Activity: Historical Return: Expected and Required Rates of Return

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 file below. Open the spreadsheet and perform the required analysis to answer the questions below.

What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places.
What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places.
What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place.
What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place.
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.

D E m F Historical Returns: Expected & Required Rates of Return Historical Returns: Year 2011 2012 2013 2014 2015 Stock X 12.00% 18.00% -15.00% 2.00% 22.00% Stock Y 14.00% 6.00% -3.00% 1.00% 10.00% Market 13.00% 11.00% -10.00% 1.00% 12.00% Risk-free rate, PRF Market risk premium, RPM % of Stock X in Portfolio % of Stock Y in Portfolio 3.00% 6.00% 80% 20% Stock X Stock Y Beta, b Required rate of return, n #N/A #N/A Formulas #N/A #N/A Portfolio beta, bp Required return on portfolio, rp #N/A #N/A Alternate portfolio return calculation using individual stocks' required returns: Required return on portfolio, p #N/A

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