Question: a Consider the following information: (5 marks) Standard Deviation Beta Security A 20% 1.25 Security B 30% 0.95 Security C 25% 1.75 a. What are

a Consider the following information: (5 marks) Standard Deviation Beta Security A a

Consider the following information: (5 marks) Standard Deviation Beta Security A 20% 1.25 Security B 30% 0.95 Security C 25% 1.75 a. What are the two parts of total risk? How is it measured? Which security has more total risk? (1.5 marks) b. What is systematic risk? How is measured? Which security has more systematic risk? (1.5 marks) C. Which security should have the higher expected return? (1 mark) d. Assume that market return is 12% and risk-free rate is 4%. What is the expected return for Security C? (1 mark)

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