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Question 4 1 pts The attached is a scatter plots of the excess returns on stock X and Y vs. those on the S&P 500.

Question 4 1 pts The attached is a scatter plots of the excess returns on stock X and Y vs. those on the S&P 500. Which stock has more diversifiable risk? XYvsSP500.png O Stock X O We can not tell from this plot O Both stocks X and Y have similar levels of diversifiable risk O Stock Y O None of the above 80.00% 40.00% Y = 2.0235x -0.0433 60.00% 30.00% 40.00% y = 0.4607X+0.0511... 20.00% Return on Stock X 20.00% Return on Stock Y 10.00% -40.00% -30.00% -20.00% 0.00% -10.00% 0.00% 20.00% 10.00% 20.00% 30.00% 40.00% 0.00% -10.00% 0.00% -40.00% -30.00% -20.00% 10.00% 20.00% 30.00% 40.00% -40.00% -10.00% -60.00% -80.00% Return on SP500 -20.00% Return on SP 500 (A) Stock X (B) Stock Y

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