Stock X has a 10.5% expected return, a beta coefficient of 1.0, and a 30% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.

Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.

CVx =

CVy =

c. Calculate each stock's required rate of return. Round your answers to two decimal places. rx d. On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor? Select- e. Calculate the required return of a portfolio that has $4,000 invested in Stock X and $3,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places f. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return? Select