25,0% standard deviation. The risk free rate is 6%; and the market risk premium is 5%. a. Calculate esch stock's coetfident of vamation. Plound your answers to two decimal places, Do not round intermediate caculations. Ck= CVr= b. Which stock is risber for a diversified investor? L. For diversified investors the relevant nisk is measured by beta. Therefore, the stock with the lower beta is more niky. stock x has the lower beta so it is more risky than stock y. 11. For diversifed investors the relevant nik is measured by standard deviation of expected returns. Therefore, the stock with the lower standard devotion of expected returis is thore ritky. Stock y has the lower standard deviatich so it is more risky than stock x. III. For diversified investoes the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock y has the higher beta so it is less risky than Stock x. N. For diversified investors the relevant nisk is measured by beta. Therefore, the stock with the higher beta is more risky. 5 tock Y has the higher beta so it is more risky than Stock X. V. For diversified investors the relevant nisk is measured by standard devation of expocted returns. Therefare, the stock wath the ligher standard deviation of expected teturns is more risky. Stock X has the higher standard deviation so in is more risky than stock Y, c Cilculate eich stock's required rate of retum. Found your answers to two decimal places. a. On the basss of the twa stocks expected and required returns, which stock would be more attractive to a diverstied imestor? e. Cacilste the required return of a portfolio that has 55,500 invested in stock X and 55,000 invested in stuck y. Do not round inkermediate caloulations, Round your answer to two decimal places fsin= t. If the markes risk premiurn increased to 6%. which of the two stods would have-the largerincrease in its requifed return? Stotk x has a 10.5% expected return, a beta coefficent of 1.0, and a 300 standard deviation of expected retums. 5 tock y has a 12.5% expected return, a beta coefficent of 1.2. and a 25.0% - gandard devation. The risk-free rate is 6%, and the market risk premium is 5%. 3. Calculate each stock's coefficient of variation. Round your answers to two decimal places, Do not round intermediate calculations. CVt=CVy= b. Which stuck is risker for a diversefied imvestor? 1. For diversified livestors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky. Stock X has the lower beta so it is more risky than Stock Y II. For diversified investors the relevant risk is meacured by standard deviation of expected returns. Therefore, the stock, with the lower standard deviation of expected returns is more nsky. Stock Y has the lower standard devation so it is more risky than 5 tock X. III. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock y has the higher beta so it is less risky than stockx1, W. For divensfied investors the reievant nsk is measured by beta. Therefore, the stock with the higher beta is more nisky, 5 tock Y has the higher beta so it is more risky than Stock x. V. For diversified investors the relevant nisk is mensured by standard deviation of expected returns. Therelore, the stoxk with the higher stancard deviation of expected retarns is more risky. Stock X has the higher standard deviakion so it is more risky than stock y. c. Calculate each stock's required rate of return. Round your answers to two decomot places. fx=fy=46%os . On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversitied investor? e. Calculate the required retum of a portfolio that has $6,500 invested in stock X and $5,000 ifvested in stock Y, Do not round intermediate calculations. Found your answer to two decimal places. rp= f. If the market risk premium increased to 6%, which of the two socks would have the larger increase in its required return? Stock X has a 10.5% expected retum, a beta coefficient of 1.0, and a 30% standard deviation of expected retums. 5 tock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 25.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. a. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CVx=CVx= b. Which stock is riskier for a diversified investor? I. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky. Stock X has the lower beta so it is more risky than stock Y. II. For diversified investors the relevant risk is measured by standard devation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is more risky. Stock y has the lower standard deviation so it is more risky than stock x. III. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than stock x. IV. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than stock X. V. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more risky. Stock X has the higher standard deviation so it is more nisky than stock Y. c. Calculate each stock's required rate of return. Round your answers to two decimal places. rx=ry=%% d. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investon? e. Calculate the required return of a portfolio that has $6,500 invested in stock X and $5,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places. rp= \% f. If the market nisk premium increased to 6%, which of the two stocks would have the larger increase in its required return