Stock X has a 10% expected return, a Beta coefficient of .9, and a 35% standard...

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Finance

Stock X has a 10% expected return, a Beta coefficient of .9,and a 35% standard deviation of expected return. Stock Y has a12.5% expected return, a bet coefficient of 2, and a 25% standarddeviation. The risk free rate is 2% and the market risk premium is5%
Calculate each stock’s coefficient of variation.
Which stock is riskier?
Calculate each stock’s required rate of return.
Calculate the required rate of return of a portfolio that has$7,500 invested in Stock X and $2,500 invested in Stock Y.

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Stock X Y expected return 10 1250 standard deviation 35 25 coeffiecient of variation standard deviationexpected return 1035 29 12525 50 See Answer

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Stock X has a 10% expected return, a Beta coefficient of .9,and a 35% standard deviation of expected return. Stock Y has a12.5% expected return, a bet coefficient of 2, and a 25% standarddeviation. The risk free rate is 2% and the market risk premium is5%Calculate each stock’s coefficient of variation.Which stock is riskier?Calculate each stock’s required rate of return.Calculate the required rate of return of a portfolio that has$7,500 invested in Stock X and $2,500 invested in Stock Y.