Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 25.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.

EVALUATING RISK AND RETURN Stock X has a 10% expected return, a bela coefficient of 0.9 and a 35% standard deviation of expected returns Stock Y has a 12.5% expected return, a bota coefficient of 12 and a 25% standard deviation. The risk free rates and the market risk premium is 5% a. Calculate each stock's coefficient of variation b. Which stock is riskier for a diversified investor? c. Calculato each stock's required rate of return d. On the basis of the two stocks' expected and required retums, which stock would be more attractive to a diversified investor? Calculate the required return of a portfolio that has $7.500 invested in Stock and $2,500 invested in Stock 1. the market risk premium increased to 0%, which of the two stocks would have the larger increase in its required return