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19 tuer Explain. 19 ter? RISK RETURN Stock x has a 10% expected return, 0.9 AND and a 35% standard deviation of expected a beta
19 tuer Explain. 19 ter? RISK RETURN Stock x has a 10% expected return, 0.9 AND and a 35% standard deviation of expected a beta coefficient of coefficient of 1.2, and a 25% standard returns. Stoc Y has a 12.5% expected return, a beta premium is 5%. deviation. The risk-free rate is 6%, and market the a. Calculate each stock's coefficient of variation. b. Which stock is riskier for a diversified investor? c. Calculate each stock's required rate of return d. On the basis of the two stocks' expected and returns, which stock would be more attractive required to a diversified investor? e. Calculate the required return of a portfolio that has $7,500 invested in Stock x and $2,500 invested in Stock f. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return
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