Evaluating risk and return

Stock X has a 10.5% expected return, a beta coefficient of 1.0, and a 40% standard deviation of expected returns. Stock Y has a 12.5% expected return, a beta coefficient of 1.2, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.

A. Calculate each stock's coefficient of variation. Round your answers to two decimal places.

  CV_x = 

  CV_y =

B. Calculate each stock's required rate of return. Round your answers to two decimal places.

  r_x =

  r_y =

C. Calculate the required return of a portfolio that has $10,000 invested in Stock X and $3,000 invested in Stock Y. Round your answer to two decimal places.

  r_p =