Video Excel Online Structured Activity: Evaluating ik and retum Suck X has a 10.0% expected return, a beta cocent of 0.9 and a 35% standard deviation of expected retums. Steek has a 12.04 expected return, beta coefficient of 1.1, and 25.0% standard deviation. The risk-free rate is 69, and the market is premium is 5. The data has been colected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Coen spredet a Calculate nach stock's comment of vario Round your answers to decimal place around internet calculations CV 3.50 CV- 2.08 b. which stock sker for a diversified investor 1. For diversified investors the relevantnek mensured by standard deviation of expected retums. Therefore, the stock with the higher standard deviation of expected return it more Stock as the higher standard deviations in more sky than Stock Il For dive investors the relevant risk masured by beta Therefore, the stock with the lower be is more. So the lower beats more than Stock TIL For diversified investors the relevant risk is measured by standard deviation of expected retums. Therefore, the stock with the lower standard deviation expected returns in more too Y has the lower andard deviation is more than Stock IV. For diverse investore the relevant rok is measured by beta Therefore, the stock with the higher Details Stock has the higher basses || | | V. For diverted investors the relevant ismered by bets Therefore, the stock with the higher betale materky Stock Y has the beta so it is more risky IV. ror diverse investors the relevant is measured by Deca inererore, the STOCK with the nigner de 15 es risky SEO Thas the nigner betales than Stock X V. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X V Calculate each stock's required rate of return. Round your answers to two decimal places 10.50 12.50 d. On the basis of the two stocks expected and required retums, which stock would be more attractive to a diversified investor? Calculate the required retush or a portfolio: that has 510,000 invested in stock X and $2,500 invested in Stock . Do not round intermediate calculations. Round your answer to two decimal places 11.00 3 1. Ir the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required retur? Stock Check My Won Rete Problem Video Excel Online Structured Activity: Evaluating risk and retum Stock X has a 10.0% expected retum, abeta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 25.0% standard deviation. The risk-free rate is 6, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below, Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Caleate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations CV- 3.50 2.08 3. Which stock is nekier for a diversified investor? 1. For diversified 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 it is more risky than Stock Y 11. 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 sky than StockY TIL. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected return is more risky. Stock y has the lower standard deviation so it is more risky than Stock TV. For diverse investors the relevant risk is measured by beta. Therefore, the stock with the higher bets is less risky. Stock y has the higher beta so it is less than stock V. For diversified investors the relevantnisk is measured by beta. Therefore, the stock with the higher het is more sky. Stock has the hiaherbata returns is more risky. Stock Y has the lower standard deviation so it is more risky than Stock X. 1. For diversified investors the relevant risk is measured by beta, Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X V. For diversified investors the relevant risk is measured by bets. Therefore, the stock with the higher boto is more risky. Stock y has the higher beta so it is more risky than Stock X IV C. Calculate each stock's required rate of return Round your answers to two decimal places 10.50 12.50 d. On the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified investor ocky Calculate the required return of a portfolio that has $10,000 invested in stock and 52,500 invested in Stock Y. Do not round intermediate calculation. Round your awet to two decimal places 11,00 the market is premium increased to 6%, which of the two stooks would have the larger increase in its required retum BOY Check My Work Video Excel Online Structured Activity: Evaluating ik and retum Suck X has a 10.0% expected return, a beta cocent of 0.9 and a 35% standard deviation of expected retums. Steek has a 12.04 expected return, beta coefficient of 1.1, and 25.0% standard deviation. The risk-free rate is 69, and the market is premium is 5. The data has been colected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Coen spredet a Calculate nach stock's comment of vario Round your answers to decimal place around internet calculations CV 3.50 CV- 2.08 b. which stock sker for a diversified investor 1. For diversified investors the relevantnek mensured by standard deviation of expected retums. Therefore, the stock with the higher standard deviation of expected return it more Stock as the higher standard deviations in more sky than Stock Il For dive investors the relevant risk masured by beta Therefore, the stock with the lower be is more. So the lower beats more than Stock TIL For diversified investors the relevant risk is measured by standard deviation of expected retums. Therefore, the stock with the lower standard deviation expected returns in more too Y has the lower andard deviation is more than Stock IV. For diverse investore the relevant rok is measured by beta Therefore, the stock with the higher Details Stock has the higher basses || | | V. For diverted investors the relevant ismered by bets Therefore, the stock with the higher betale materky Stock Y has the beta so it is more risky IV. ror diverse investors the relevant is measured by Deca inererore, the STOCK with the nigner de 15 es risky SEO Thas the nigner betales than Stock X V. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X V Calculate each stock's required rate of return. Round your answers to two decimal places 10.50 12.50 d. On the basis of the two stocks expected and required retums, which stock would be more attractive to a diversified investor? Calculate the required retush or a portfolio: that has 510,000 invested in stock X and $2,500 invested in Stock . Do not round intermediate calculations. Round your answer to two decimal places 11.00 3 1. Ir the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required retur? Stock Check My Won Rete Problem Video Excel Online Structured Activity: Evaluating risk and retum Stock X has a 10.0% expected retum, abeta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 25.0% standard deviation. The risk-free rate is 6, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below, Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Caleate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations CV- 3.50 2.08 3. Which stock is nekier for a diversified investor? 1. For diversified 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 it is more risky than Stock Y 11. 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 sky than StockY TIL. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected return is more risky. Stock y has the lower standard deviation so it is more risky than Stock TV. For diverse investors the relevant risk is measured by beta. Therefore, the stock with the higher bets is less risky. Stock y has the higher beta so it is less than stock V. For diversified investors the relevantnisk is measured by beta. Therefore, the stock with the higher het is more sky. Stock has the hiaherbata returns is more risky. Stock Y has the lower standard deviation so it is more risky than Stock X. 1. For diversified investors the relevant risk is measured by beta, Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X V. For diversified investors the relevant risk is measured by bets. Therefore, the stock with the higher boto is more risky. Stock y has the higher beta so it is more risky than Stock X IV C. Calculate each stock's required rate of return Round your answers to two decimal places 10.50 12.50 d. On the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified investor ocky Calculate the required return of a portfolio that has $10,000 invested in stock and 52,500 invested in Stock Y. Do not round intermediate calculation. Round your awet to two decimal places 11,00 the market is premium increased to 6%, which of the two stooks would have the larger increase in its required retum BOY Check My Work