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C 8 RISK AND RETURN * * * PLEASE ANSWER ACCORDING TO EVERYTHING THAT NEEDS TO BE ANSWERED / CORRECTED ON THE PICTURE TO GET

C8 RISK AND RETURN *** PLEASE ANSWER ACCORDING TO EVERYTHING THAT NEEDS TO BE ANSWERED/ CORRECTED ON THE PICTURE TO GET A POSITIVE FEEDBACK ***Stock x has a 10.0% expected return, a beta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta
coefficient of 1.2, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel
Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
a. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.
CVx=
CVy=
c. Calculate each stock's required rate of return. Round your answers to two decimal places.
rx=,%
ry=,%
d. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
Stock Y
e. Calculate the required return of a portfolio that has $2,500 invested in Stock x and $9,500 invested in Stock Y. Do not round intermediate calculations. Round
your answer to two decimal places.
rp=,%
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