Chap's Firm "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%.

Please, show procedure per each premise. Thank you.

a) Determine the coefficient of variation of each action.

b) Explain which action is riskier for diversified investors.

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

d) Explain which of the shares could be more attractive to investors.

e) Calculate the performance of a portfolio that has $ 9,200 invested in the "Y" share and $ 3,500 invested in the "Z" share.

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