B. Case: Assessing risk and return (Value: 30 points)

Silver Industries Company "Y" shares have an expected return of 15%, a beta coefficient of 0.8, and a standard deviation of expected returns of 31%. The company's Z shares have an expected return of 11.3%, a beta coefficient of 1.5, and a standard deviation of 25%. The risk-free rate is 5% and the market risk premium is 4%. (30 points)

to. Determine the coefficient of variation for each stock.

b. Explain which action is riskier for diversified investors.

c. Calculate the expected rate of return for both stocks.

d. Explain which of the stocks might be more attractive to investors.

and.

e. Calculate the return on a portfolio that has $ 9,200 invested in Stock "Y" and $ 3,500 invested in Stock "Z".

f. Suppose the market risk premium increases to 7%, which of the stocks would have a higher return?