Question: Stock X has a 9 . 0 % expected return, a beta coefficient of 0 . 7 , and a 4 0 % standard deviation

Stock X has a 9.0% expected return, a beta coefficient of 0.7, and a 40% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 20% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. Calculate each stock's required rate of return. Round your answers to one decimal place.
rx =
%
ry =
% Calculate the required return of a portfolio that has $7,500 invested in Stock X and $2,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.

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