You have observed the following returns over time:
Year Stock X Stock Y Market
2012 14% 13% 12%
2013 19 7 10
2014 −16 −5 −12
2015 3 1 1
2016 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?