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Stock X has a 95% expected return, a beta coefficient of 0.8, and a 30% standard deriation of expected returns. 5 tock Y has a

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Stock X has a 95% expected return, a beta coefficient of 0.8, and a 30% standard deriation of expected returns. 5 tock Y has a 12.5% expected return, a beea coefficient of 1.2, and a 25.0% standard devibtion. The risk-free rote is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Onane file below, Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. Calculate each stock's coefficient of vanation, Round your answers to two decimal places. Do not round intermediate calculations. CVx=CVy= b. Which stock is riskeer for a diversified investor? I. For diversified investors the relovant risk is measured by beta. Therefore, the stock with the lower beta is more fisky, 5 tock X has the lower beta sa it is moce nisky than 5 tock Y. 11. For diversified investors the relevant isk is measured by standard deviation of expected retuens. Therefore, the stock with the lower standard. deviation of expected returns w more nisky, 5 tock Y has the lower standard deylation so it is more risky than 5 tock X. III. I or diversified investais the relevant risk is measured by beta. Therefore, the stock with the figher beta in less risky stock y has the higher betin so it is less tinicy than Stock X. IV. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more ritky. 5 tock r has the higher beta so it is more rikky than Stock X. V. For diversfind investors the relevant riak is measured to standard devatron of eapected ieturns. Therefore, the stock with the higher standard. devation of expected returns is mare nisky stock X has the higher standord devation wo it is more nisky than theck Y 111. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beti is less risky 5 tock Y has the higher beta so it is less risky than Stock X. TV. For drversified investors the relevant risk, is measured by beta. Therefore, the stock with the higher beta is more risky. 5 tock Y has the higher beta so it is more nisky than Stock X. V. For. dwersifed investors the relevant risk is 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 tt is more risky than 5 tock Y

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