Stock X has a 9.5% expected return, a beta coefficient of 0.8,
and a 40% standard deviation of expected returns. Stock Y has a
12.0% expected return, a beta coefficient of 1.1, and a 30.0%
standard deviation. The risk-free rate is 6%, and the market risk
premium is 5%. The data has been collected in the Microsoft Excel
Online file below. Open the spreadsheet and perform the required
analysis to answer the questions below.
Open spreadsheet
Calculate each stock's coefficient...