Excel Online Activity: Evaluating risk and return Question 0/10 Video Submit Excel Online Structured Activity Evaluating risk and return Stock x has a 10.0% expected return, beta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock y has a 12.5% expected return, beta cercent of 1.2. and a 20.0% 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 te below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet . Calculate each stocks coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations CV. CV- Which stock is riskier 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 morensky Stock y has the lower standard deviation to it is more risky than Stock X. 11. For diversified investors the relevant risk is measured by bets. Therefore, the stock with the higher beta is less risky. Stock Y as the higher beta w it is less risky than Stock X II. For diversified Investors the relevant risk is measured by bete. Therefore, the stock with the Nigher beta is more risky Stock Y has the higher beta so it is more city than Stock x 16. 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 For diversified investors the relevant risk is measured by bete. Therefore, the stock with the lower bete is more risky Stock as the lower beta so is more risky than Stock Calculate each stock's required rate of retur Round your answers to two decimal place Autosaved a 10 00 AM Next BE Excel Online Activity: Evaluating risk and return Question 1 GV10 CV- Submit 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 as the lower standard deviation so it is more risky than Stock X 11. 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 III. For diversified investors the relevant risk tas measured by bets. Therefore, the stock with the higher bets in more risky Stock y has the higher beta so it is more sa than Stock IV. For diversited investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation et expected returns is more risky. Stock X has the higher standard deviation so it is more risky than Stock V. Per diversified investors the relevant risk is measured by bets. Therefore, the stock with the lower beta is more risky. Stock X has the lower buta so it is more risky than Stock is Calculate each stock's required rate of return. Round your answers to two decimal places. Ty 6. On the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified Investor? e. Calculate the required return of a portfolio that has $2,500 invested in Stock Xond $8,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places fe El the market risk premium increased too, which of the two stocks would have the larger increase in its regured return? Check My Work Root