Question: Standard Deviation Beta Security X 0.35 1.06 Security Y 0.28 1.45 Security Z 0.44 1.22 Which security has the greatest systematic risk? A. Z because

Standard Deviation Beta
Security X 0.35 1.06
Security Y 0.28 1.45
Security Z 0.44 1.22

Which security has the greatest systematic risk?

A. Z because it has the largest standard deviation.

B. Y because it has the largest beta coefficient.

C. Z because it has a high beta and the largest standard deviation.

D. Y because it has the greatest diversifiable risk. E. It is not possible to tell given the information above.

Which security has the greatest expected return?

A.

Z because it has the highest standard deviation.
B.

Z because it has the highest ratio of standard deviation to beta.
C.

Y because it has the highest beta.
D.

X because it has the lowest beta coefficient, and therefore the lowest systematic risk.
E.

It is not possible to tell given the information above.

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