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Following is information about two stocks. Albert has some money to invest, and he wants to buy either Stock A or Stock B. Which stock
Following is information about two stocks. Albert has some money to invest, and he wants to buy either Stock A or Stock B. Which stock should Albert purchase if he plans to hold only one of them in a single- stock portfolio? Stock Expected Return Standard Deviation Beta A 15.0% 18% 1.80 B 9.0 21 0.75 O Stock A, because it has the higher coefficient of variation. O Stock B, because it has the lower expected return. Stock B, because it has the lower beta coefficient. Stock A, because it has the lower standard deviation and the higher expected return. Stock A, because it has the higher beta coefficient
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