You have observed the following returns over time: Year Stock X Stock Y Market 2015 14% 13% 12% 2016 19 7 10 2017 −16 −5 −12 2018 3 1 1 2019 20 11 15 Assume that the risk-free rate is 6% and the...

1. You have observed the following returns over time:

Year          Stock X           Stock Y           Market

2015          14%                 13%                 12%

2016          19                    7                      10

2017          −16                  −5                    −12

2018          3                      1                      1

2019          20                    11                    15

Assume that the risk-free rate is 6% and the market risk premium is 5%.

1. What are the betas of Stocks X and Y?

PLEASE DO NOT USE EXCEL SHOW FORMULAS TO CALCULATE BOTH BETAS!