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B. Problem 8.19 (Evaluating Risk and Return) Problem Thrwugh Stock X as a wow expected rerum abeta comielent 0.2, and standard deviation of expected returne,

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B. Problem 8.19 (Evaluating Risk and Return) Problem Thrwugh Stock X as a wow expected rerum abeta comielent 0.2, and standard deviation of expected returne, Shock What a 12.00 expected return, beta coefficient of 1:1, and a 25% standard deviation. The free rates, and the market remium Concutate each other concert of variation. Do not round turmediate calculation. Wound your answers to two doma poes. CV. Which stockisker for a diversified investor per diversified investors the relevantnih masured by standard deviation of expected reture. Therefore, the stock with the higher standard deviation of expected return sier Sticks the higher standard deviation so it is sker than Stock Y 11. For tiveruled investors the relevant tiek is measured by heta. Therefore, the stock with the lower bete is riket Stock Pas the lower besitter than stock III. For diversified investors the wants mesured by standard deviation of expected retums. Therefore, the stock with the lower standard deviation of expected returns to Yh the lower standard deviation to its rikiertun Stock I For the fied wwestors there is measured by the Therefore, the stock with the higher et is less risky stock has the herbetorkynn Rock V poroverited investors the relevantes matured by beta. Therefore, the stud with the higherbetisk stock has the right to than stock 6. Carote cachos required to return. Round your answers to one decimal place - - Os the best the two o'clandedeum which toch would be more to a diventator v Calle terenuried return of a sort that has 10,000 vested in Stock Xond $2,000 invested in Stock Dorot round wtermediate found your wer to two decimales tot If the marketing to which of the two Moda wave the rencontrerede v

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