4. Riskiness Joe is a student, does not have a full-time job, and he does not...

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4. Riskiness Joe is a student, does not have a full-time job, and he does not own any stocks. He is looking to buy a stock or two. Following is some information for the two securities he is considering, P and Q: Standard Deviation Security P Security Q 15% 25% Beta 1.5 0.7 If Joe buys one of these, how should he think about them, comparatively? Specifically, Which security has more total risk? Which security has more systematic risk? . Which security should have the higher expected return? Explain in full. 2 4. Riskiness Joe is a student, does not have a full-time job, and he does not own any stocks. He is looking to buy a stock or two. Following is some information for the two securities he is considering, P and Q: Standard Deviation Security P Security Q 15% 25% Beta 1.5 0.7 If Joe buys one of these, how should he think about them, comparatively? Specifically, Which security has more total risk? Which security has more systematic risk? . Which security should have the higher expected return? Explain in full. 2