Question: 5. Consider the following information: Return Standard Deviation Beta Security A 10% 1.30 Security B 18% 0.96 Which has greater total risk? Which has a
5. Consider the following information: Return Standard Deviation Beta Security A 10% 1.30 Security B 18% 0.96 Which has greater total risk? Which has a higher systematic risk? Higher unsystematic risk? Which asset will have a higher risk premium? Why? (12 points) Explain your reasons to get full points.
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