Solution-What are the betas of stocks x and y

What are the betas of stocks x and y

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Reference no: EM131100703

You have observed the following returns over time:
Assume that the risk-free rate is 6 percent and the market risk premium is 5 percent.

a. What are the betas of Stocks X and Y?
b. What are the required rates of return for Stocks X and Y?
c. What is the required rate of return for a portfolio consisting of 80 percent of Stock X and 20 percent of Stock Y?
d. If Stock X's expected return is 22 percent, is Stock X under- or overvalued?

Reference no: EM131100703

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What are the betas of stocks x and y

Reference no: EM131100703

Reference no: EM131100703

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