Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 40% standard eleviation of expected returns. 5 tock Y has a 12.0% expected return a beta coetficlent of 1.1, and a 25,0% standard deriation. The risk-free rate is 6%, and the market risk premtum is 5%. The data has treen collected in the Microsot Excel Online fle below, Open the spreadsheet and perform the required analysis to ansaer the questions below. Open roreddeheet a. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round interthediate calculations, CVx=CVy= b. Which stock is risider for a diversifed investor? 1. For diversified investors the relevant risk is measured by beta. Therefore, the stock w th the higher beta is more risky. Stock Y has the higher bete so it is more rigky than steck x It. For diversified investors the relevant risk is measired by standard deviation of expected returns. Therefore, the steek with the higher standard deviation of expected retums is more risky. Seock x has the Nigher clandars deviation so it is more riuky than stack x, 113. For diversitied investors the relevant fick is measured by bets. Therefare, the stock with the lower beta is more ritk, stedk x has the lower beka so it is more risky than Stock Y. IV. For oivers fied investors the relevant fisk is measured by mandard devation of expected reburs. Therefore, the stock with the luper standare deviation of expected ceturns is more mithy. 5 tock y has the lower standard deviation a it is mere nisky than 5 tock x, V. For diversified imestors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. 9 ock y has the Higher beta so it is lest risky than 5 tock X. IV. For diversified investors the relevant risk is measured by standard deviation of expected retums. Therefore, the stock with the iower standard devibtion of expected returns is more risky. Stock Y has the lower standard deviation so is is more risky than stock x. V. 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 bete so it is less risky than 5 tock x. C. Calculate each stock's required rase of return, foound your answers to two decinul places. rx=ry= d. On the basis of the two shocks expected and required returns, which stock would be more attractive to a diversfied investich? e. Calculate the required return of a portfollo that has $5,500 imvested in 5 tock X and $4,500 invested in 5tockY. Do net round intermediate calcuistions. Rlound youe answer ta tea decimal places. F. If the market risk preinlum incressed to 6%, which of the two stocks would have the larger indresse in its required return