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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.
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