Stock R has 14% expected return, 20% standard deviation, 1.3 beta coefficient where as Stock S has 9% expected return, 30% standard deviation and a beta coefficient of 0.8. the market risk premium is 6.5% and the risk-free rate is 5%. Calculate the coefficient of variation of each stock.                          Calculate the required rate of return of each stock.                            Calculate the required return of a portfolio that has RM2,000 in Stock S and RM 8,000 in Stock R.

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A: Computation:

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