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....

aluating risk and return xcel Online Structured Activity: Evaluating risk and return tock 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 coendent of 1.2, nd a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online me below en the preadsheet and perform the required analysis to answer the questions below a. Calculate each stock's coefficient of varlation. Round your answers to two decimal places. Do not round intermediate calculations. cy,= b. Which stock is riskier for a diversified investor? diversified Investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky, Stock Y has the higher beta so it is more than Stock x risky For diversified n esors the relevant risk i returns is more risky. Stock X has the higher standard deviation so it is more risky than Stock Y s measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected . For diversified investors the relevant risk is mesured by beta. Therefore, the stock with the lower beta is more nisky. Stock X has the lower beta so it is more risky than v. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected V. For diversifed 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 Y returns is more risky. Stock Y has the lower standard deviation so it is more nisky than Stock Nex