Question: Question 1: Stock A has an expected return of 7% and a standard deviation of expected returns of 30%. Stock B has an expected return

Question 1: Stock A has an expected return of 7% and a standard deviation of expected returns of 30%. Stock B has an expected return of 12% and a standard deviation of returns of 35%.

Which security is riskier?

Which one would you invest in and why?

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