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 13 % 14 % 11 2012 19 5 9 2013 -17 -4 -11 2014 3 2 1 2015 18 11 16 Assume that the risk-free rate is 4% 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 Open spreadsheet a. 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. b. 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. c. What is the required rate return on a portfolio consisting 80% of Stock X and 20% of Stock Y? Do not round Intermediate calculations. Round your answer to one decimal place. Historical Returns: Expected & Required Rates of Return Historical Returns: Year 2011 2012 2013 2014 2015 Stock X 13.00% 19.00% -17.00% 3.00% 18.00% Stock Y 14.00% 5.00% -4.00% 2.00% 11.00% Market 11.00% 9.00% -11.00% 1.00% 16.00% Risk-free rate, 'RF Market risk premium, RPM. % of Stock X in Portfolio % of Stock Y in Portfolio 4.00% 6.00% 80% 20% Stock X Stock Y Formulas #N/A #N/A Beta, b; Required rate of return, r; #N/A #N/A #N/A Portfolio beta, bp Required return on portfolio, rp #N/A Alternate portfolio return calculation using individual stocks' required returns: Required return on portfolio, rp #N/A