Expected and Required Rates of Return .
(6-13): Historical Returns: Expected and Required Rates of Return You have observed the following returns over time: Year Stock X Stock Y Market 2003 14% 13% 12% 2004 19 7 10 2005 216 25 212 2006 3 1 1 2007 20 11 15 Assume that the risk-free rate is 6% and the market risk premium is