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5. Stock X has a 10% expected return, a Beta coefficient of .9, and a 35% standard deviation of expected return. Stock Y has a

5. Stock X has a 10% expected return, a Beta coefficient of .9, and a 35% standard deviation of expected return. Stock Y has a 12.5% expected return, a bet coefficient of 2, and a 25% standard deviation. The risk free rate is 2% and the market risk premium is 5%

  1. Calculate each stocks coefficient of variation.
  2. Which stock is riskier?
  3. Calculate each stocks required rate of return.
  4. Calculate the required rate of return of a portfolio that has $7,500 invested in Stock X and $2,500 invested in Stock Y.

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