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2 0 % standard deviation. The risk - free rate is 6 % , and the market risk premium is 5 % . a .

20% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.
a. Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places.
CVx=
CVy=
b. Which stock is riskier for a diversified investor?
x.
returns is riskier. Stock x has the higher standard deviation so it is riskier than Stock Y.
Y.
returns is riskier. Stock Y has the lower standard deviation so it is riskier than Stock X.
Stock X.
c. Calculate each stock's required rate of return. Round your answers to one decimal place.
d. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
two decimal places.
rp=,%
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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