Question: Which security has the highest systematic risk? Why? What is the systematic risk of the portfolio? Is the systematic risk of the portfolio more or

Which security has the highest systematic risk? Why? What is the

  1. Which security has the highest systematic risk? Why?
  2. What is the systematic risk of the portfolio?
  3. Is the systematic risk of the portfolio more or less than the market? Why?
  4. Can we claim the unsystematic (residual) risk of Security C is greater than the unsystematic risk of Security D?

Standard Deviation Stock Beta 2.69 Weights 13.30% 20.00% 26.70% 40.00% 40% 40% Security A Security B Security C Security D 0.2 2.16 25% 2.4 25%

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