Instructions: After studying the educational resources assigned in this module related to risk and return analysis in companies, solve the following problems. It is recommended to use Microsoft Excel or a financial calculator to perform the calculations. It is important to include the procedure and briefly explain how you obtained each result. Keep in mind that the rubric also includes a criterion for evaluating the correct use of language, grammar, spelling, and syntax. . Practical Exercises: . Explain how different statistical measures of individual risk help managers and business owners make better decisions. For your response, consider the following statistical measures of risk: probability distributions, expected rates of return, historical rates, standard deviation, coefficient of variation, and Sharpe ratio. . In the last 5 years, River Valley Industries has reflected a risk-free rate of 3% and the following returns on stocks A and B: | 1| 17% [ 21% | 1 Calculate the coefficient of variation for stocks A and B. Determine and explain which stock has performed better. Suppose that the company New Investors Inc. has the following investment alternatives: Probabilit Determine the expected return. Suppose you have invested $35,000 in stocks with a beta of 0.9 and another $17,000 in stocks with a volatility (beta) of 3.2%. Determine the percentage of volatility (beta) of the portfolio. Suppose the risk-free rate is 7.7% and the market return is 10%. Calculate the expected rate of return of a stock with a volatility (beta) of 3%. . Determine the expected rate of return of Campo Industries, assuming that the inflation rate will be 3.2%. Also, the risk-free rate is 2.2% and the market risk premium is 5.1%. The company has a beta of 1.7% and the rate of return over the last 4 years has been 7.6% B. Case: Evaluating Risk and Return The "Y" shares of Silver Industries have an expected return of 15%, a beta coefficient of 0.8, and a standard deviation of expected returns of 31%. The "Z" shares of the company have an expected return of 11.3%, a beta coefficient of 1.5, and a standard deviation of 25%. The risk- free rate is 5% and the market risk premium is 4%. a. Determine the coefficient of variation for each stock. b. Explain which stock is riskier for diversified investors. c. Calculate the expected rate of return for both stocks. d. Explain which stock might be more attractive to investors. e. Calculate the return of a portfolio that has $9,200 invested in "Y" stock and $3,500 invested in "Z" stock. f. Suppose the market risk premium increases to 7%, which stock would have a higher return