Stock X has a 10.5% expected return, a beta coefficient of 1.0, and a 30% standard deviation of expected returns. Stock Y has a 12.0% expected retur, o beta coefficient of 1.1, and a 25.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5% a. Calculate each stock's coefficient of variation Round your answers to two decimal places. Do not round Intermediate calculations CV. CV b. which stock was rokdet for diversified investor 1. For diversified investors the relevant risk is measured by beta Therefore, the stock with the higher betal is more risky Stock y has the higher beta so it is more risky than stock X 11. 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 risk. Stock Xhas the higher standard deviation so it is more risk than Stock 111. For diversified investors the relevant risk measured by be Therefore, the stock with the lower het is more risky Stock X has the lower beta so it is more risky than Stock Y TV. 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 to more risky Stock Y has the lower standard deviation so it is more risky than Stock X For diversified investors the rehrantrisk is measured by teto. Therefore, the stock with the higher beta is less risky Stock Y has the higher beta so it les risky than Stock X c. Calculate each stock's required rate of retum. Round your answers to two decimal places. T- d. On the basis of the two stockey expected and required returns, which stock would be more attractive to a diversited Investor? -Select e. Calculate the required retum of a portfolio that has $2,000 invested in Stock X and $9,500 invested in stock Y. Do not round intermediate calculations. Round your answer to two decimal places for the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return