Stock X has a 10.0% expected return, a beta coeffident of 0.9, and a 30% standard deviation of expected returns. Stock has a 13.0% expected return, a bets conficient of 1.3, and a 20.0% standard deviation. The risk-free rate is 6%, and the market nisk premium is 5%. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round Intermediate calculations CV. - CV- 5. Which stock is riskler for a diversified investor? 1. For diversified Investors the relevant risk is measured by bets. Therefore, the stock with the higher beta is inss risky, Stock Y has the higher beta so it is less risky than Stock X 1. Per lerned Investors the relevant risk is measured by bete. Therefore, the stock with the higher bota is more risky. Stock y has the higher beta so it is more risky than III. For diversified investors the relevant risk is 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 TV. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky Stock X has the lower beta so it is more risky than Stock Y V. 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 has the lower standard deviation so it is more sky than Stock X c. Calculate each stock's required rate of retum. Round your answers to two decimal places Fy 4. On the basis of the two stocks expected and required returns, which stock would be more attractive to a diversified investor? t. Calculate the required return of a portfolio that has $6,500 invested in Stock X and $5,000 invested in stock Y. Do not round intermediate calculations. Round your answer to two decimal places 1. If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required retur