What is the required rate of return on portfolio consisting

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You have observed the following returns over time: Year Stock X Stock Y Market 2009 12% 11% 10% 2010 19 5 9 2011 -15 -8 -12 2012 5 1 1 2013 20 13 13

Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations.

What is the beta of Stock X? Round your answer to two decimal places.

What is the beta of Stock Y? Round your answer to two decimal places.

What is the required rate of return on Stock X? Round your answer to one decimal place.

%

What is the required rate of return on Stock Y? Round your answer to one decimal place.

%

What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Round your answer to one decimal place.

%

Reference no: EM131050298

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