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Stock X has a 9.5% expected return, a beta coefficient or 0.8, and a 40% standard deviation of expected returns Stock Y has a 13.0%

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Stock X has a 9.5% expected return, a beta coefficient or 0.8, and a 40% standard deviation of expected returns Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and - 20.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5% Calculate each stock's coercent of variation. Round your answers to two decimal places. Do not round intermediate calculations CV, b. Which stock is risker for a diversified Investor? 1. 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 standard deviation satis more risky the Stock X 11. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher batas less risky Stock Y has the higher beta so it is less risky than stock X m. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher bet is more risky Stock Y has the higher beta so it is more TV. For diversified investors the relevant risk measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more risky. Stock X has the higher standard deviation so it is more risky than Stock V. 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 risky than Stock Y -Select c. Calculate each stock's 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 -Select e. Calcuate the required return of a portfolio that has 59,000 invested in Stock X and $9.500 invested in Stacky. Do not round intermediate calculations. Round your answer to two decimal places 1. If the market risk premium increased to 6%, which of the two stacks would have the ager increase in its required retur? Select

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