Question: Following is information about two stocks. Leanne is considering adding one of the stocks to her well-diversified portfolio, which currently has a beta equal to

Following is information about two stocks. Leanne is considering adding one of the stocks to her well-diversified portfolio, which currently has a beta equal to 1.2. Which stock should she purchase to ensure the risk of her portfolio does not increase? Stock A B Expected Return 15.0% Standard Deviation 19% 21 B Beta 1.80 0.75 9.0 Stock A, because it has the lower standard deviation

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