Question: please show work You have observed the following returns over time: Assume that the risk-free rate is 6% and the market risk premium is 5%
please show work

You have observed the following returns over time: 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 80% of Stock X and 20% of Stock Y? d) If Stock X's expected return is 22%, is Stock X under or overvalued
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