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

Security X .............. 0.35 ........................ 1.06

Security Y .............. 0.28 ........................ 1.45

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

1) 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.

2) 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.