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1. Risk The figure shows plots of monthly rates of return and the stock market for two stocks. (a) Which stock has a higher beta
1. Risk The figure shows plots of monthly rates of return and the stock market for two stocks. (a) Which stock has a higher beta with respect to the market portfolio? (b) Which stock is riskiest to an investor currently holding the market portfolio? Why? (c) Which stock do you think is riskiest to an undiversified investor who puts all of his funds in only one of these stocks? Why
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