Evaluating risk and return stock x has a 10.5% expected return, a beta coefficient of 1.0, and a 35% standard deviation of expected returns. Stock y has a 12.5% expected returns, a beta coefficient of 1.2, and a 20.0% standard deviation. The risk free rate in 5%, and the market risk premium in 5%. a. Calculate with risk's confident of variation. Not record intermediate calculation. CV_ = CV_y = b. which stock is riskier a diversified investor? I. For diversified investors the relevant risk is measured by date. Therefore, the stock with the higher beta is more risky. Stock if has the higher beta so it is more risky then stock X. II. For diversified investors the relevant risk is measured by standard deviation of extended returns. Therefore, the stock with the higher standard deviation of expected returns. Therefore the stocks with the higher standard deviation of expected returns is more risky Stock x has the higher standard deviations it is more risky then stocks X. III. For diversified investor the relevant risk in measured by beta. Therefore, the stock with the lower beta is more risky Stock x has the lower beta to it is more risky then Stock X. IV. For diversified investor the relevant risk is measured by standard deviation of excited returns. Therefore the stock with lower standard deviation of expected returns is more risky. Stock X has the lower standard deviation so it is more risky then stock X. V. For diversified investor the relevant risk in measured by beta. Therefore, the stock with the higher beta is less risky Stock Y has the higher so it is more risky then stock X. C. Calculate each stock's required rate of returns. r_x = % r_y = % d. On the basis of the two stocks expected and required, which stock would more attractive to a diversified investor? e. Calculated the recurred of a portfolio that has $2000 answered in stock X and $ 0000 invested in stock X. Do not round interested calculation. Returns your answer to two decimal places f_a = % f. If the market risk premium increased to 5%, which of the two stocks would have the larger increase in its required returns