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Evaluating risk and return Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 40% standard deviation of expected returns. Stock

Evaluating risk and return Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 40% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 25.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. Calculate each stock's coefficient of variation. Round your answers to two decimal places.

a. CVx = CVy =

b. Calculate each stock's required rate of return. Round your answers to two decimal places. rx = % ry = %

c. Calculate the required return of a portfolio that has $4,500 invested in Stock X and $2,500 invested in Stock Y. Round your answer to two decimal places. rp = %

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