....................... Standard Deviation ......... Beta

Security X .............. 0.35 ........................ 1.45

Security Y .............. 0.28 ........................ 1.06

Security Z .............. 0.44 ......................... 1.22 .

Which security has the largest expected return?

A. Y because it has the lowest standard deviation.

B. X because it has the largest beta coefficient.

C. Z because it has the largest standard deviation.

D. Y because it has the lowest beta coefficient, and therefore the lowest systematic risk.

E. It is not possible to tell given the information above.