You have developed the following data on three stocks: Stock A has a standard deviation of .15
Question:
You have developed the following data on three stocks: Stock A has a standard deviation of .15 and a Beta of .79. Stock B has a standard deviation of .25 and a Beta of .61. Stock C has a standard deviation of .20 and a Beta of 1.29. If you are a risk minimize, you should choose Stock _____ if it is to be held in isolation and Stock _____ if it is to be held as part of a well-diversified portfolio.
a. A, A
b. A, B
c. B, B
d. C, A
e. C, B
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a A A As the standard deviation essentially reports a funds volatility which ind...View the full answer
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