Question: ....................... Standard Deviation ......... Beta Security X .............. 0.35 ........................ 1.06 Security Y .............. 0.28 ........................ 1.45 Security Z .............. 0.44 ......................... 1.22 . Which

  1. ....................... Standard Deviation ......... Beta
  2. Security X .............. 0.35 ........................ 1.06
  3. Security Y .............. 0.28 ........................ 1.45
  4. Security Z .............. 0.44 ......................... 1.22
  5. .
  6. Which security has the greatest expected return?
  7. .
  8. A.Z because it has the highest standard deviation.
  9. B.Z because it has the highest ratio of standard deviation to beta.
  10. C.Y because it has the highest beta.
  11. D.X because it has the lowest beta coefficient, and therefore the lowest systematic risk.
  12. E.It is not possible to tell given the information above.

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