Question: Which security should have a higher return and why? Security Standard Deviation Beta Stock A 20% 2.15 Stock B 45% 1.50 A.Stock B, it has
Which security should have a higher return and why?
| Security | Standard Deviation | Beta |
| Stock A | 20% | 2.15 |
| Stock B | 45% | 1.50 |
A.Stock B, it has a higher standard deviation
B.Stock A, it has a lower standard deviation
C.Stock A, it has a higher beta
D.Stock B, it has a lower beta
E.Cannot tell from the information given
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
