8. Sam wants to invest in stock market and he contacted his broker to get some information regarding some of preferable stocks. The broker send the following data on three stocks to Sam. If Sam is a strict risk minimizer, he would choose: Beta P 1 B Standard Deviation 20% 17% 15% 22% 0.7 0.4 1.15 D E E 11% 0.9 A) Stock "B" if it is to be held in isolation and Stock *B* if it is to be held as part of a well-diversified portfolio B) Stock *D* if it is to be held in isolation and Stock "A" if it is to be held as part of a well-diversified portfolio C) Stock "Eif it is to be held in isolation and Stock "C" if it is to be held as part of a well-diversified portfolio D) Stock "C" if it is to be held in isolation and Stock "B" if it is to be held as part of a well-diversified portfolio E) None of the above 9. Raghida holds a diversified portfolio consisting of a $10,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.2. She has decided to sell one of her stocks that has a beta equal to 0.7 for $10,000. Raghida used the proceeds to purchase another stock that has a beta equal to 1.4. What will be the beta of the new portfolio?* A) 1.165 OB) 1.235 OC) 1.250 OD) 1.284 OE) None of the above