question 26

1. You have the following data on three stocks: Stock Standard Deviation Beta A 20% 0.59 B 10% 0.69 12% 1.29 If you are a strict risk minimize, 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. 1. C; A 2. C; B. 3. A; A. 4. A: B. 5. B; A