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excel for help answer A Excel Online Structured Activity: Evaluating risk and return Stock x has a 10.0% expected return, a beta coefficient of 0.9,

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Excel Online Structured Activity: Evaluating risk and return Stock x has a 10.0% expected return, a beta coefficient of 0.9, and a 35% standard deviation of expected returne, 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 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. a Calculate each stock's coefficient of variation. Round your anwwers to two decimal place. Do not oond totermediate calculation CV. - CV- Which stock snaker for a diversified investor 1. For diversified investors the relevant risk measured by bots. Therefore, the stode with the higher basis more risky Stock y how the higher beta so it more sky than Stock 11. For diversified investore the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more riskey Stock X has the higher sandard deviation of more risley than Stock For diversified investors the relevant risk is measured by buta. Therefore, the stock with the lower beta is more Stock X has the lone bela to it is more sky than Stock IV. For diversified investors the relevant iki masured by standard deviation of expected retums. Therefore, the stock with the lower standard deviation of cpected return is more risky Stock y has the love standard deviation to it is more rely than stock V. For diversified investors the relevant role measured by bota. Therefore the stock with the higher betales y stock V has the higher batas less riler than stole 10.00% 0.90 35.00% ooa 12.50% 1.20 25.00% 1 Evaluating risk and return 2 3 Expected return of Stock X 4 Beta coefficient of Stock X 5 Standard deviation of Stock X retums 6 7. Expected return of Stock Y 8 Beta coeficient of Stock Y 9 Standard deviation of Stock y retums 10 11 Risk-free rate (CR) 12 Market tisk premium (RP) 13 14 Dollars of Stock X in portfolio 15 Dollars of Stock Y in portfolio 16 17 Coeficient of Vanation for Stock X 18 Coefficient of Nanation for Stock Y 19 20. Risker stock to a diversified investor 6.00% 5.00% $6,500.00 $8,000.00 Formulas #N/A #N/A #N/A Sheet1 Calculation Mode: Automatic Workbook Statistics A D F #N/A #NIA #N/A #N/A 18 Coeficient of Variation for Stock Y 19 20 Riskier stock to a diversified investor 21 22 Required return for Stock X 23 Required return for Stock Y 24 25 Stock more attractive to a diversified investor 26 Required return of portfolio containing 27 Stocks X and Y in amounts above 28 29 New market nisk premium #N/A #N/A 6.00% #N/A With new market risk premium, stock with larger 30 increase in required return 31 32 Check 33 New required return, Stock X 34 Change in required retum Stock X #N/A #N/A 8 Sheet1 + Calculation Mode Automatic Workbook Statistics

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