The annual standard deviation of return on Stock As equity is 37 percent and the correlation coefficient
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The annual standard deviation of return on Stock A’s equity is 37 percent and the correlation coefficient of these returns, with those on a well-diversified portfolio, is 0.62. Comparable numbers of Stock B are 34 percent and 0.94. Which stock is riskier? Why?
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Related Book For 
Analysis For Financial Management
ISBN: 9781260772364
13th Edition
Authors: Robert Higgins, Jennifer Koski, Todd Mitton
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