Question: Q: Sixcent is having higher beta while HSCC is having smaller standard deviation. Explain why the results of beta and standard deviation can be different

Q: Sixcent is having higher beta while HSCC is having smaller standard deviation. Explain why the results of beta and standard deviation can be different even though both of them are

measuring "risk"

Sam has $10,000 and is considering investing in two stocks - HSCC and Sixcent. The table below shows the returns of the stocks under different possible scenarios: HSCC Probability 0.25 2% State of Affair Pandemic (long period of lockdown) Pandemic (short period of lockdown) No Pandemic Sixcent 20% 10% 2% 0.3 5% 0.45 18%

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