Question
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 35% standard deviation of expected returns. Stock Y has a 13.0%
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 35% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 20.0% 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 = Calculate each stock's required rate of return. Round your answers to two decimal places.
rx = ____%
ry = ____%
Calculate the required return of a portfolio that has $2,000 invested in Stock X and $10,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.
rp =____ %
Answer all parts to this question for a good rating.
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