Question
If you have three stocks with the following variances and betas, then (A) which stock has the most risk; (B) which stock has the most
If you have three stocks with the following variances and betas, then (A) which stock has the most risk; (B) which stock has the most systematic risk; and (C) which stock should have the highest expected return?
A) Most risk Stock A; most systematic risk Stock C; highest expected return Stock A | |
| B) Most risk Stock C; most systematic risk Stock C; highest expected return Stock C |
| C) Most risk Stock B; most systematic risk Stock C; highest expected return Stock C |
| D) Most risk Stock B; most systematic risk Stock A; highest expected return Stock B |
| E) Most risk Stock C; most systematic risk Stock A; highest expected return Stock A |
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