Stock x has a 9.5% expected return, a bela coefficient of 0.8, and a 35% standard deviation of expected returns Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 20.0% standard deviation. The risk-free rate in 6%, and the market ink premium ios%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. THHI Open spreadsheet a. Calculate each stock's coefficient of variation, Round your answers to two decal places. Do not round intermediate calculations CV. CV- b. Which stock larialer for a diversified Inventor? 1. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta ia more riuky Stock Y has the higher beta con 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 risky Stock x has the higher standard deviation so it is more risky than Stock III. For diversified investors the relevant nok is measured by beta. Therefore, the stock with the lower bota is more risky, Stock X has the lower beta so it morensky than Stocky, IV. 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 morensky stock Y has the lower standard deviation so it is more risky than Stock X V. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher bets is less risky. Stock y has the higher beta so it's less risky than Stock X 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 is more risky. Stock Y has the lower standard deviation sot is more nisky than Stock X. W. 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 beta totis less noky than Stock c. Calculate cach stock's required rate of return. Round your answers to two deomal places T. TV d. On the basis of the two stocks' expected and required retums, which stock would be more attractive to a diversified investor e Calculate the requiredotturn of a portfolio that has 56,000 invested in Stock X and 9,500 invested in stock y do not round intermediate calcutations, Round your answer to two decimal places if the market rak premium increased to which of the two stocks would have the larger increase in its required return? B D F 9.50% 0.80 35.00% 12.50% 1.20 20.00% A 1 Evaluating risk and retum 2 3 Expected return of Stock X 4 Beta coefficient of Stock X 5 Standard deviation of Stock X returns 6 7 Expected return of Stock Y 8 Beta coefficient of Stock Y 9 Standard deviation of Stock y returns 10 11 Risk-free rate (TRE) 12 Market risk premium (RPM) 13 14 Dollars of Stock X in portfolio 15 Dollars of Stock Y in portfolio 16 17 Coefficient of Variation for Stock X 18 Coefficient of Variation for Stock Y 19 20 Riskier stock to a diviersified investor 21 22 Required return for Stock X 23 Required return for Stock Y 6.00% 5.00% $6,000.00 $9,500.00 Formulas #N/A #N/A #N/A #N/A #N/A B F G D IN/A G H UNIA WNIA 6.00% A 23 Required return for Stock Y 24 25 Stock more attractive to a diversified investor 26 Required return of portfolio containing 27 Stocks X and Y in amounts above 28 29 New market risk premium With new market risk premium, stock with larger 30 Increase in required return 31 32 Check 3a New required return, Stock X 34 Change in required return. Stock X 35 36 New required return, Stock Y 37 Change in required return. Stock Y 38 39 Stock with greater change in required retum 40 WNIA WNIA WNIA WNIA MINIA WNIA