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Stock X has a 1 0 . 0 % expected return, a beta coefficient of 0 . 9 , and a 3 5 % standard
Stock X has a expected return, a beta coefficient of and a standard deviation of expected returns. Stock Y has a expected return, a beta coefficient of and a standard deviation. The riskfree rate is and the market risk premium is Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places. CVx CVy Which stock is riskier for a diversified investor? For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is riskier. Stock Y has the lower standard deviation so it is riskier than Stock X For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is riskier. Stock Y has the higher beta so it is riskier than Stock X For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is riskier. Stock X has the higher standard deviation so it is riskier than Stock Y For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock X has the lower beta so it is riskier than Stock Y Select Calculate each stock's required rate of return. Round your answers to one decimal place. rx ry On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor? Select Calculate the required return of a portfolio that has $ invested in Stock X and $ invested in Stock Y Do not round intermediate calculations. Round your answer to two decimal places. rp If the market risk premium increased to which of the two stocks would have the larger increase in its required return? Selectpremium is a Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places. b Which stock is riskier for a diversified investor? than Stock X riskier than Stock Y V For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock X has the lower beta so it is riskier than Stock Y c Calculate each stock's required rate of return. Round your answers to one decimal place. d On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor? f If the market risk premium increased to which of the two stocks would have the larger increase in its required return? Select V
Stock X has a expected return, a beta coefficient of and a standard deviation of expected returns. Stock Y has a expected return, a beta coefficient of and a standard deviation. The riskfree rate is and the market risk premium is
Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places.
CVx
CVy
Which stock is riskier for a diversified investor?
For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is riskier. Stock Y has the lower standard deviation so it is riskier than Stock X
For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X
For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is riskier. Stock Y has the higher beta so it is riskier than Stock X
For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is riskier. Stock X has the higher standard deviation so it is riskier than Stock Y
For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock X has the lower beta so it is riskier than Stock Y
Select
Calculate each stock's required rate of return. Round your answers to one decimal place.
rx
ry
On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
Select
Calculate the required return of a portfolio that has $ invested in Stock X and $ invested in Stock Y Do not round intermediate calculations. Round your answer to two decimal places.
rp
If the market risk premium increased to which of the two stocks would have the larger increase in its required return?
Selectpremium is
a Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places.
b Which stock is riskier for a diversified investor?
than Stock X
riskier than Stock Y
V For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock X has the lower beta so it is riskier than Stock Y
c Calculate each stock's required rate of return. Round your answers to one decimal place.
d On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
f If the market risk premium increased to which of the two stocks would have the larger increase in its required return?
Select V
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