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Please choose the best answer by circling the correct choice Stand- alone risk of a stock is measured by 1. Variance 2. Standard Deviation 3.

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Please choose the best answer by circling the correct choice Stand- alone risk of a stock is measured by 1. Variance 2. Standard Deviation 3. Beta 4. Coefficient of Variation A. Two stocks, X and Y have the following characteristics: X has an expected return of 18% and a standard deviation of returns 11% Y has an expected return of 15% and a standard deviation = 9%. According to standard financial approach in the textbook and as discussed in class, which is a better bet in terms of risk/return? Explain why? B. 1. Stock X 2. StockY C. Risk Free rate is typically defined as: 1. Triple A Corporate bond yield 2. The LIBOR rate 3. The Prime Rate 4. None of the above D. Market Risk 1. cannot be diversified away 2. can be removed completely by intelligent diversification 3. is only present if there is a major disaster, like 9/11

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