Excel Online Structured Activity: Historical Return: Expected and Required Rates of ReturnYou have observed the following returns over time:YearStock XStock YMarket201114%12%10%201220 7 9 2013-13 -2 -13 20143 1 2 201519 9 12 Assume that the risk-free rate is 4% and the market risk premium is 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank 2What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank 3What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place.fill in the blank 4 %What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place.fill in the blank 5 %What is the required rate of return 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.fill in the blank 6 %

Here, YearStock XStock YMarket201114%12%10%201220%7%9%2013-13%-2%-13%20143%1%2%201519%9%12%

Answered: You have observed the following returns…

Essentials of Business Analytics (MindTap Course List)

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ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...

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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	%	12	%	10	%
2012	20		7		9
2013	-13		-2		-13
2014	3		1		2
2015	19		9		12

Assume that the risk-free rate is 4% and the market risk premium is 6%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

What is the beta of Stock X? Do not round intermediate calculations. Round your answer to two decimal places.

fill in the blank 2

What is the beta of Stock Y? Do not round intermediate calculations. Round your answer to two decimal places.

fill in the blank 3
What is the required rate of return on Stock X? Do not round intermediate calculations. Round your answer to one decimal place.

fill in the blank 4 %

What is the required rate of return on Stock Y? Do not round intermediate calculations. Round your answer to one decimal place.

fill in the blank 5 %
What is the required rate of return 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.

fill in the blank 6 %

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