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Consider the following two stocks: Security Standard deviation of returns Beta Stock 1 20% 1.8 Stock 2 25% 1.2 Hints: this exercise can help you
Consider the following two stocks: Security Standard deviation of returns Beta Stock 1 20% 1.8 Stock 2 25% 1.2 Hints: this exercise can help you answer Final Exam part2 - Q4. Part 1 - Attempt 1/2 for 10 pts. A. Which stock has more total risk? B. Which stock has more systematic risk? o Stock 2; B. Stock 1 A. Stock 1; B. Stock 2 A. Stock 1; B. Stock 1 A. Stock 2; B. Stock 2 Correct Part 2 Attempt 1/2 for 10 pts. Which stock should have more unsystematic risk? not enough information to compute the unsystematic risk of each stock O Stock 1 and Stock2 may have equal unsystematic risk measured in Std Dev O Stock 2 O Stock 1 Submit
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