Question: Consider the following information: Standard Deviation Beta Security K 20% 1.25 Security C 30% 0.95 1. Which security has more total risk? Explain why. 2.

Consider the following information:

Standard Deviation Beta

Security K 20% 1.25

Security C 30% 0.95

1. Which security has more total risk? Explain why.

2. Which security has more systematic risk? Explain why.

3. Which security should have the higher expected return? Explain why.

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