Question: Use the following data to answer questions 1 through 4: An analyst gathers the following information: Security Expected Annual Return Expected Standard Deviation Correlation between

 Use the following data to answer questions 1 through 4: An

Use the following data to answer questions 1 through 4: An analyst gathers the following information: Security Expected Annual Return Expected Standard Deviation Correlation between Security i and the Market Security 1 Security2 Security 3 Market 11% 12% 14% 15% 15% 17% 22% 11% 0.90 0.80 0.60 1.00 1. Which security has the lowest total risk: Why? 2. Which security has the highest total risk? Why? 3. What is the beta for security with the highest beta? 4. What is the beta for the security with the lowest beta

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