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Question 1-1 Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of -0.3,
Question 1-1 Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which security is riskier? Why?
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