Graphical derivation and interpreting beta You are analyzing the performance of two stocks as shown in the following graphs: The first shown in Panel A, Is Cyclical Industries Incorporated Cyclical industries makes machine tools and other heavy equipment, the demand for which rises and falls closely with the overal state of the economy. The second stock, shown in Panel Bis Biotech Cures Corporation Biotech Cures uses biotechnology to develop new pharmaceutical compounds to treat incurable diseases Biotech's fortunes are driven largely by the success or failure of its scientists to discover new and effective drugs. Each data point on the graph shows the monthly return on the stock of interest and the monthly return on the overall stock market. The lines drawn through the data points represent the characteristic lines for each security a. Which stock do you think has a higher standard deviation? Why? b. Which stock do you think has a higher buta? Why? c. Which stock do you think is riker? What does the answer to this question depend on? a. Which stock do you think has a high standard deviation? Why? (Select the best newer below.) Data Table - X O A Bitech Cures stock has a higher standard deviation because its characteristiine has a higher OB Botech Oures stock has a higher standard deviation because it has a larger rage of returns OG Cyclical industries shock has a high standard deviation because it has a large range of retums Panel Panel OD. Cytical resock has a higher anderd devion because characters in higher se . Which ock do you think has a herbete? Why teet the best awer below) 10 Q O A Cyclical Indes ock has a higher et because it has a large range of returns OB Cyclical vock has a higher bets because is characteristiine has a higher OCBtech Cures lock has a higher er because it has a large range of OD. Bech Cures stock has a higher but because its characteristic inhas a higher slope Which shock do you think is er? What does the answer to this cuestion depend on? HOM Non Overall O A Cyclical Corporation O bicchures Corporation Done Click to select your