Question
Common stock A has an expected return of 8%, a standard deviation of future returns of 20%, and a beta of 1.2. Common stock B
Common stock A has an expected return of 8%, a standard deviation of future returns of 20%, and a beta of 1.2. Common stock B has an expected return of 10%, a standard deviation of future returns of 12%, and a beta of 1.4. Which stock is riskier? Explain.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
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