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17. StockA has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of 0.15, and

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17. StockA has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of 0.15, and a beta coefficient of 0.35. Stocke has an expected return of 12%, a standard deviation of returns of 10%, a 0.78 correlation with the market, and a beta coefficient of 1.18. Which security is riskier for a rational diversified investor? Why? 18. Explain the following statement: The stand-alone risk of an individual corporate project may be quite high; but viewed in the context of its effect on stockholders' risk; the project's true risk may not be very large

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