tock X has a 9.5% expected return, a beta coefficient of 0.8 , and a 30% standard deviabicn of expected returns. Stock Y has a 12.5% expected return, a beta coefficent of 1.2 , ond 2096 standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. a. Calcilate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two deomal places. CVr=cVr= b. Which stock is nisker for a civersifed imveston 1. For diversified investors the relevart risk is measured by standard deviation of expected refurns. Therefore, the stock with the higher standard deviabion of expected returns is riskjer. Stack X has the higher standard deviation so it is risker than Stock Y. 11. For diversined investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is riskjer, Stock x has the icker beta so it is riskier than stock Y. 111. For diversined investors the relevant risk is measured by standard devatian of expected returns. Therefore, the stock with the lower standard deviaton of expected returns is riskier. Stock Y has the lower standard deviation so it is riskier than stock X. IV, for diversifed investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less ribky. Stock Y has the higher beta so it is less nisty then Stock X. V. 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 tian stock x. c. Calculate eoch stock's required rate of retuen. Round your anseers to one decimal place. d. On the besis of the two stocls' expected and required returns, which stock would be more attractive to a diverafied investor? to two decimal piaces. fE= 4. If the market risk premium increned to 64., which of the two stocks would have the larger increase in its required return