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Figure 12.11 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock

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Figure 12.11 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock is given beside its plot. a. Which stock is safest for a diversified investor? Ford Pfizer Walmart b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? Ford Pfizer O Walmart

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