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6. Calculate the standard deviation of expected returns, or for Stock A (co - 20.69%.) Do not round Intermediate calculations, Round your answer to two decimal places 13.42 Now calculate the coeficient of variation for Stock B. Do not round Intermediate calculations, Round your answer to two decimal places 1.31 Is it possible that most investors might regard Stock B as being less risky than Stock A? 1. Stock B a more highly correlated with the market than A, then it might have a higher beta than stock and hence be less risky in a portfolio sense IL I Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense IL I Stock 3 is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense IV. 11 Stock 8 is less highly correlated with the market than A, then it might have a lower beta thon Stock A, and hence bolest rieky in a portfolio senie, V. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense IV c. Assume the risk-free rate is 3.5% What are the Sharpe ratios for Stocks A and B? Do not found intermediate calculations. Round your answers to four decimal places, Stock AI 0.6483 Stock : 0.5945 Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part b? 1. In a stand-alone risk sense As more risky than 8.1 Stock 8 is less highly correlated with the market than A, then it might have a lower beta than Stock and hence be less risky in a portfolio sense 11. In a stand-alone risk sense Als more risky than 8. I Stock 8 is less highly correlated with the market than A, then it mght have a higher beta than Stock and hence be more risky in a portfolio sense III. In a stand-alone risk sense Asess risky than 3. If Stock B is more highly correlated with the market than then it might have the same beta as Stock and hence be just as risky in a portfolio est. IV. In a stand-alone nisk sense A is less risky than 8. Stock is less highly correlated with the market than A then it might have a lower beta than Stock A and hence be less risky in a portfolio sense V. In a stand-alone risk sense A is less risky than 0. Stock is highly correlated with the market than A then it might have a higher lets than Stock and hence be more risky in a portfolio sense

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