Question: Consider the following information for questions 5-7: Standard Deviation Beta Security L Security M 25% 20% 99 1.12 Which Security has the most total risk?

 Consider the following information for questions 5-7: Standard Deviation Beta Security

Consider the following information for questions 5-7: Standard Deviation Beta Security L Security M 25% 20% 99 1.12 Which Security has the most total risk? 5. Security L a. b. Security M Security L & Security M have the same total risk C. Which security should have the higher expected return? 6. Security L a. b. Security M Security L& Security M have the same total risk C. 7. If you hold a portfolio of 50% Security L& 50% Security M, assuming they are not perfectly positively correlated, what will your standard deviation of the portfolio be? Less than 22.5% a. 22.5% b. More than 22.5% c

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