Question: Question 2 Consider the following information about two securities. Standard deviation Beta Security A 40% 0.50 Security B 20% 1.50 Which has greater total risk?

Question 2

Consider the following information about two securities.

Standard deviation

Beta

Security A

40%

0.50

Security B

20%

1.50

  1. Which has greater total risk?
  2. Which has greater systematic risk?
  3. Which has greater unsystematic risk?
  4. Which has a higher risk premium?

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