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b. Which stock is riskier for a divers.fied investor? 1. For diversined investors the relevant risk is measured by beta. Therefore, the stock with the

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b. Which stock is riskier for a divers.fied investor? 1. For diversined investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskler. Stock X thas the lower beta so it is riskiar than Stack. y. II. For diversified investors the reievant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is riskief. Stock Y has the lower standard deviation so it is riskier than Stock X. 1il. 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 sa it is iess risky than Stock X. NV. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is riskier, 5 toek y has the higher beta so it is riskier then Stock x. V. For diversified investors the relevent risk is measured by standard deviation of expected returns, Therefore, the stock with the higher standard deviation of expected returns is riskler. 5 tock X has the higher standard devistion so it is riskler than 5 tock Y, c. Calculate each stock's required rate of return. Round your answers to one decimal place. d. On the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified investor? e. Calculate the required return of a portfolio that has $9,000 invested in 5 tock X and $3,000 invested in 5 stock Y, Do not round intarmediate calcalatiens, Hound your answer to two decimal placesi, pij= f. If the market nisk premiut increased to 6%, which of the two stocks would have the iarger increase in its required return

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