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1.

Returns
Year X Y
1 17 % 20 %
2 20 32
3 11 15
4

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Casey Durgan
Casey DurganLv2
28 Sep 2019

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Returns
Year X Y
1 11 % 23 %
2 15 26
3 10 11
4
Returns
Year X Y
1 15 % 20 %
2 18 30
3 9 15
4 – 9 – 16
5 10 20

Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation as a percent rounded to 2 decimal places, e.g., 32.16, and round the variance to 5 decimal places, e.g., 32.16161.)

X Y
Average return % %
Variance
Standard deviation % %

You have observed the following returns over time:? Year Stock X Stock Y Market 2006 14% 13% 12% 2007 19 7 10 2008 -16 -5 -12 2009 3 1 1 2010 20 11 15 Assume that the risk free rate is 6% and the market risk premium is 5% -what are the betas of stocks X and Y -What are the required rates of return on stocks X and Y -What is the required rate of return on a portfolio consisting of 80% of stock X and 20% of stock Y -If stock X's expected return is 22%, is stock X under or overvalued?

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