Lonesome Gulch Mines has a standard deviation of 42 percent per year and a beta of +

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Lonesome Gulch Mines has a standard deviation of 42 percent per year and a beta of + .10. Amalgamated Copper has a standard deviation of 31 percent a year and a beta of + .66. Explain why Lonesome Gulch is the safer investment for a diversified investor.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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