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2. Refer to the graph below. Compare stock 2 with stock 5. (6pts) A. Which stock is riskier to an investor currently holding her portfolio
2. Refer to the graph below. Compare stock 2 with stock 5. (6pts) A. Which stock is riskier to an investor currently holding her portfolio in a diversified portfolio of common stock? Explain. (3pts) B. Which stock is riskier to an undiversified investor who puts all of his funds in only one of these stocks? Explain. 3pts) R1 R2 Rs RM RM 2. Refer to the graph below. Compare stock 2 with stock 5. (6pts) A. Which stock is riskier to an investor currently holding her portfolio in a diversified portfolio of common stock? Explain. (3pts) B. Which stock is riskier to an undiversified investor who puts all of his funds in only one of these stocks? Explain. 3pts) R1 R2 Rs RM RM
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