Stock A has an 11% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. stock B has a 13% expected return, a beta coefficient of 1.5, and a 20% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.

a) calculate each stock's coefficient of variation

b) Which stock is riskier for a diversified investor?

c) calculate each stock's required rate of return

d) 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 retuen of a Portfolio that has $6,000 invested in stock A and $ 4,000 invested in stock B.

f) If the market risk premium increase to 6%, which of the two Stocks would have the larger increase in its required return?