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Company X and Y have the following probability distribution of the stock retums in one year. Stock X has a beta of 1.3, stock Y

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Company X and Y have the following probability distribution of the stock retums in one year. Stock X has a beta of 1.3, stock Y has a beta coefficient of 1.7. The risk free rate is 6%, and the market risk premium is 7%. (15 points) a. calculate each stock's coefficient of variation. ( 6 points) b. which stock is preferred for a non-diversified investor? Explain why? (2 points) c. calculate each stock's required rate of return. (4 points) d. which stock would be more attractive to a diversified investor? Explain why? (3 points)

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