Question 2

You have the following data on three stocks. Stock A has a standard deviation of 20% and beta of 0.59, stock B has a standard deviation of 10% and beta of 0.61, Stock C has a standard deviation of 12% and beta of 1.29 , and Stock D has a standard deviation of 5% and beta of 1.5. If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

		a. A; A.
		b. D; B.
		c. B; A.
		d. D; A.
		e. C; B.