a$.$ Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places.

$C{V}_x=$

$C{V}_y=$

b$.$ Which stock is riskier for a diversified investor?

II$.$ For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock $x$ has the lower beta so it is riskier than Stock Y$.$

IV$.$ 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$.$

V$.$ For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is riskier. Stock Y has the higher beta so it is riskier than Stock X$.$

c$.$ Calculate each stock's required rate of return. Round your answers to one decimal place.

$r_x=\%$

$r_y=\%$

d$.$ On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?

$-$Select$-V$

$\%$

f$.$ If the market risk premium increased to $6\%,$ which of the two stocks would have the larger increase in its required return?

PLEASE ANSWER ALL PARTS CORRECTLYYou plan to invest in the Kish Hedge Fund, which has total capital of $$500$ million invested in five stocks:

returns is realistic:

a$.$ What is the equation for the Security Market Line $($SML$)?($Hint: First determine the expected market return.$)$

I. $r_i=9\mathrm{.}0\%+(9\mathrm{.}1\%)b_i$

II$.r_i=5\mathrm{.}0\%+(8\mathrm{.}0\%)b_i$

III. $r_i=3\mathrm{.}7\%+(9\mathrm{.}5\%)b_i$

IV$.r_i=5\mathrm{.}0\%+(9\mathrm{.}1\%)b_i$

V$.r_i=9\mathrm{.}0\%+(8\mathrm{.}0\%)b_i$

$-$Select$-vv$

b$.$ Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

expected return of $14\%$ and its estimated beta is $1\mathrm{.}4.$ Should Kish invest in the new company?

The new stock

be purchased.

At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

PLEASE ANSWER ALL PARTS CORRECTLY