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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
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? Stock X has the higher standard deviation so it is riskier than Stock Y. Stock Y has the lower standard deviation 50 it is riskier than Stock X. c. Calculate each stock's required rate of return. Round your answers to one decimal place. rx=ry=%0%a d. On the basis of the two stocks' expected and required retums, which stock would be more attractive to a diversified investor? decimal places. rp= Qo f. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required retum
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