Sam wants to invest in stock market and he contacted his broker to get some information regarding some of preferable stocks. The broker send the following data on three stocks to Sam. If Sam is a strict risk minimizer, he would choose: *

A) Stock "B" if it is to be held in isolation and Stock "B" if it is to be held as part of a well-diversified portfolio.

B) Stock "D" if it is to be held in isolation and Stock "A" if it is to be held as part of a well-diversified portfolio.

C) Stock "E" if it is to be held in isolation and Stock "C" if it is to be held as part of a well-diversified portfolio.

D) Stock "C" if it is to be held in isolation and Stock "B" if it is to be held as part of a well-diversified portfolio.

E) None of the above

Beta A Standard Deviation 20% 17% 1 0.7 B C 15% 0.4 D 22% 1.15 E 11% 0.9