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5) 5) You are thinking of adding one of two investments to an already well diversified portfolio. Security A Expected return-12% Standard deviation of returns

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5) 5) You are thinking of adding one of two investments to an already well diversified portfolio. Security A Expected return-12% Standard deviation of returns = 20.9% Beta-.8 Security B Expected return-12% Standard deviation of returns-10.1% Beta 2 If you are a risk-averse investor A) security B is the better choice. B) security A is the better choice. C) either security would be acceptable. D) cannot be determined with information given

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