Question: Security A has an expected return of 7 percent, a standard deviation of returns of 30 percent, a correlation coefficient with the market of -0.3,

Security A has an expected return of 7 percent, a standard deviation of returns of 30 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -1.6. Security B has an expected return on 12 percent, a standard deviation of returns of 12 percent, a correlation coefficient with the market of 0.82 and a beta coefficient of 1.08. Which security is riskier? Why? Explain. (3 points) (Hint: discuss both from a stand-alone perspective and a portfolio perspective)

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