Evaluating risk and return
Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 30% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 25.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.
Calculate each stock's coefficient of variation. Round your answers to two decimal places.
CVx =
CVy =
Calculate each stock's required rate of return. Round your answers to two decimal places.
rx = %
ry = %
Calculate the required return of a portfolio that has $9,500 invested in Stock X and $6,500 invested in Stock Y. Round your answer to two decimal places.
rp = %