Stock X has a 9.5% expected return, a beta 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 is 6%, and the market risk premium is 5%. 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

a. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.

CV_x =

CV_y =

b. Calculate each stock's required rate of return. Round your answers to two decimal places.

r_x =

r_y =

e. Calculate the required return of a portfolio that has $6,500 invested in Stock X and $4,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.

r_p =

Evaluating risk and return
Expected return of Stock X	9.50%
Beta coefficient of Stock X	0.80
Standard deviation of Stock X returns	35.00%
Expected return of Stock Y	12.50%
Beta coefficient of Stock Y	1.20
Standard deviation of Stock Y returns	20.00%
Risk-free rate (rRF)	6.00%
Market risk premium (RPM)	5.00%
Dollars of Stock X in portfolio	$6,500.00
Dollars of Stock Y in portfolio	$4,000.00
			Formulas
Coefficient of Variation for Stock X			#N/A
Coefficient of Variation for Stock Y			#N/A
Riskier stock to a diviersified investor			#N/A
Required return for Stock X			#N/A
Required return for Stock Y			#N/A
Stock more attractive to a diversified investor			#N/A
Required return of portfolio containing Stocks X and Y in amounts above			#N/A
New market risk premium	6.00%
With new market risk premium, stock with larger increase in required return			#N/A
Check:
New required return, Stock X			#N/A
Change in required return, Stock X			#N/A
New required return, Stock Y			#N/A
Change in required return, Stock Y			#N/A
Stock with greater change in required return			#N/A

.