Question 4 (1 point) Stocks X and Y have the following probability distributions of expected future returns: Probability 0.30 0.30 0.40 a) Stock X. X b) Stock Y. -22% 5% 30% Calculate the coefficient of variation (CV) for Y -11% -10% 50% a)0.32; b)0.46; c)Stock X a)3.13; b)2.16; c)Stock Y a)3.13; b)2.16; c)Stock X a)0.32; b)0.46; c)Stock Y c) Using CV as your sole decision making criterion, which stock is a better investment?

Stocks X and Y have the following probability distributions of expected future returns: Calculate the coefficient of variation (CV) for a) Stock X. b) Stock Y. c) Using CV as your sole decision making criterion, which stock is a better investment? a) 0.32 ; b) 0.46 ; c)Stock X a) 3.13 ; b) 2.16 ; c)Stock Y a) 3.13 ; b) 2.16 ; c)Stock X a) 0.32 ; b) 0.46 ; c)Stock Y a) Calculate the fund's beta. b) If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? a) 1.25; b) 11.75% a) 0.00; b) 3.00% a) 0.30; b) 5.10% a) 0.30; b) .90% a) 1.05 ; b) 10.35% Stock R has a beta of 2.0 , Stock S has a beta of 0.50 , the required return on an average stock is 12.5%, and the risk-free rate of return is 4.00%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? 18.75% 12.75% 24.75% 24.75% 12.75%