Stock X has a 9.5% expected retum, abeta coeficient of 0.8, and a 40% standard deviation of expected retums. Stock Y has a 12.0% expected retum, beta coeficient of 1.1, and 25.01 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. cv. - cv, - b. Which stock is risker for a diversified investor? 1. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky Stock X has the lower beta so it is more 11. 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 more risky. Stock Y has the lower Mandard deviation set is more risky than Stock III. for diversified investors the relevant risk measured by beta. Therefore, the stock with the righer betalerky. Stock has the higher beta so tiste IV. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher betala mere roky. Stock y has the higher beta so it is V. For diversified investors the relevant risk measured by Mtandard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more risky Stock X has the higher Mandard deviation so it is more risky than Stock risky than Stock Y. risky than Stock X it is more e. Calculate each stocks required rate of return. Round your answers to two decimal places d. on the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified investor Calculate the required return of a portfolio that has $3,500 invested in Stock X and $2,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places 1. the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return