Excel Onlne Structured Activity: Evaluating ritk and returm and a 30.0% standard devietion. The rikk.free rate is 6%, and the market rivk premium is 5%. The data has been collected in the Microsot. Excet Online file beiow. Open the spresdsheet and perform the required analysis to answer the questiens below. Open spresdsheet a. Calculate each stock's coemcient of variation. Hound your answers to tivo decimei places. Da not round intemmediate calculatisns. CVx= CVy= b. Which stock is risber for a diversifed investor? 1. Foe diversf fed livestors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the Migher beta is if is more nisy than stackx. II. For diversifiod investors the relevant risk is measured by standard deviation of expected retums. Therefore, the stock with the higher standard ceviatico of expected retarns is more risky. Stock X has the higher standard deviation so it is mere ritiky than steck Y. 13. for diversined investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky. Stock X nas the lawer beta so it is more nisky than stock Y. IV. For diversfied investors the relevant risk is mieasured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected retums is more risk.. Stock Y has the lower standard deviation so it is more risky than stock X, than stock 1. W. For diveraifed investors the relevant risk is measured ty standord deviation of expected returns. Therefore, the stook weth the lonar standasd deviatien of axpected retums is more ricky. 5 tock Y has the lewer standant deristion so it is more risky than steckx. v. For diverained investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock y has the higher beea so it is less risky than stackx c. Calculate each stock's required rate of return. Round your answers to two decimal places. d. On the basis of the two stocks' expected and required retums, which stock would be more attractive to a divernified investor? e. Cakculate the required return of a portfolio that has $3,500 invested in 5 tock x and $2,500 invested in 5 tock y, Do not round intermediate calcuiations. Hound your answer to two decimal places. 1. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return