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X has a.9.5\% expected return, a beta coefficient of 0.8 , and a 40% standard deviation of expected returns. 5 tock Y has a 12.5 expected refurn, a beta efficient of 1.2, and a 20% standsrd deviation. The risk-free rate is 6%, and the market risk premium is 5%. 9. Calculate each stock's coefficient of variation. Do not round intermediate calculations. found your answers to two decimal piaces CVx= GV= b. Which stock is riskier:for a diversified investor? 1. For diversifed 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. II. For diversified investers the relevant risk is meatured by beto. Therefore, the stock with the higher beta is riskier. Stock Y has the higher beta so i is tiskier than Stock X II1. 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 riskier. Stock X has the higher standard deviation so it is riskier than Stock Y. TV. For diversified imvestors 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. V. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected retums is riskier. Stock Y has the lower standard deviation so it is riskier than Stock X. (seict. 0 c. Calculate each stock's required rate of return. Round your answers to one decimal place. ri=ry=% d. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor? 19. Caiculate the required return of a portfolio that has 54,500 invested in 5 tock X and 51,500 invested in 5 tock Y, Do not round intermediate calculationis Round your answer to two decimal places. r10= 1. If the market fisk premlum increased to. 6%, which of the two stocks would have the larger increase in its required return