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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 12.5%
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 12.5% expected return, a beta coefficient of 1.1, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. A. Calculate each stock's required rate of return. Round your answers to two decimal places. d. rx = % e. ry = % B. Calculate the required return of a portfolio that has $4,500 invested in Stock X and $8,000 invested in Stock Y. Round your answer to two decimal places. g. rp = %
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