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

 Video 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 14 % 14 % 10 % 2012

Video 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 14 % 14 % 10 % 2012 20 5 8 2013 -13 4 -10 2014 3 1 2 2015 19 12 13 Assume that the risk-free rate is 5% and the market risk premium is 6%. The data has been collected in the Microsoft Excel Online Po below. Open the spreadsheet and perform the required analysis to answer the questions below. WI Open spreadsheet You Tube 14m Tonesa Welch on Southwest T Allegedly MUVI. Historical Return: Expected and required Rates of Return Search to con oni Open spreadsheet X a. What is the beta of Stock X? Do not found 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 decamat 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. 96 c. What is the required rate of retum 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, %6 Check My Work Reset Problem D E G Market 10.00% 8,00% -10.00% 2.00% 13 009 1 Historical Returns: Expected & Required Rates of Return 2 8 Historical Returns 1 Year Stock X Stock Y 2011 14.0096 14.009 2012 20.00% 5.00% 2013 -13 009 40096 3 2014 3.00% 1.0096 2015 19.00% 12.00% 0 1 Risk-free rate. 5.0096 2 Market risk premium, RPM 6.00% 3N of Stock X in Portfolio 8096 4 % of Stock Y in Portfolio 20% 5 .6 Stock X Stock Y 27 Beta, by 18 Required rate of retum, 19 30 Portfolio beta, 21 Required retum un portfolio Formas WNA WNA WNA NA ONA WNA 23 Alternate portfolio return calculation using individual stock required

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