15-2) You must add one of two investments to an already well- diversified portfolio. Security A Security B Expected Return = 12% Expected Return = 12% Standard Deviation of Standard Deviation of Returns = 20.9% Returns = 10.1% Beta - .8 Beta = 2 If you are a risk-averse investor, which one is the better choice? a. Security A b. Security B c. Either security would be acceptable. d. Cannot be determined with information given.