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CCE y = 1.1499x + 0.0002 R2 = 0.5515 R(Stock) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -8.0% -6.0% 4.0%

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CCE y = 1.1499x + 0.0002 R2 = 0.5515 R(Stock) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -8.0% -6.0% 4.0% 2.0% 0.0% 2.0% R (S&P 500) 4.0% 6.0% 8.0% R(Stock) BIIB y = 0.4775x + 0.0251 R? = 0.0297 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% - 10.0% -15.0% -20.0% -25.0% -8.0% 6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% R(S&P 500) Based on the 2 graphs above, which stock is riskier to a non-diversified investor who puts all of his/her money in only one of these stocks? Stock CCE is riskier Both stocks are equally risky You cannot tell based on the information provided. Stock BIIB is riskier

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