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 20% standard deviation. The risk-free rate is 6%, and the market risk premlum is 5%. a. Calculate coch stock's coefficient of variation, Do not round intermediate calculations, Round your answers to two decimal places. Cx= CVy= b. Which stock is riskier for a diversified investor? 1. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected retums is riskier. 5 tock Y has the lower standard deviation so it is risker than 5 tock X : II. For diverssied investors the relevant risk is measured by beta. Therefore, the stack with the higher beta is less risky. Stock Y has the higher beto 50 it is less risky than stock x. III. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is riskier. Stock y has the higher beta so it is riskier than 5 tock x. IV. For diversified investons the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is riskier. Stock X has the higher standard deviation so it is riskicier than 5 tock Y. V. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskier. Stock has the lower beta so it is riskier than Stocky