Stock A has an expected rate of return of 8 percent, a standard deviation of 20 percent,
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Stock A has an expected rate of return of 8 percent, a standard deviation of 20 percent, and a market beta of 0.5. Stock B has an expected rate of return of 12 percent, a standard deviation of 15 percent, and a market beta of 1.5. Which investment is the riskier?
Why? (Hint: Remember that the risk of an investment depends on its context.)
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Related Book For
Healthcare Finance An Introduction To Accounting And Financial Management
ISBN: 9781567932805
4th Edition
Authors: Louis C. Gapenski
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