Question: Old MathJax webview Would you mind providing the steps. I can't seem to understand these types of questions. Thanks! yes excel works. thank you Historical

Old MathJax webview

Old MathJax webview Would you mind providing the steps. I can't seem

Would you mind providing the steps. I can't seem to understand these types of questions. Thanks!

yes excel works. thank you

Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock Y Market 13% Stock x 15% 21 -14 4 2017 2018 2019 2020 2021 11% 7 -7 -14 1 1 19 10 18 Assume that the risk-free rate is 7% and the market risk premium is 5%. a. 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: b. What are the required rates return on Stocks X and Y? Do not round intermediate calculations. Round your answers to two decimal places. Stock X: % Stock Y: c. 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. %

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