Standard Deviation	Beta
Security X	0.35	1.06
Security Y	0.28	1.45
Security Z	0.44	1.22

Which security has the greatest systematic risk?

A. Z because it has the largest standard deviation.

B. Y because it has the largest beta coefficient.

C. Z because it has a high beta and the largest standard deviation.

D. Y because it has the greatest diversifiable risk. E. It is not possible to tell given the information above.

Which security has the greatest expected return?

	A.	Z because it has the highest standard deviation.
	B.	Z because it has the highest ratio of standard deviation to beta.
	C.	Y because it has the highest beta.
	D.	X because it has the lowest beta coefficient, and therefore the lowest systematic risk.
	E.	It is not possible to tell given the information above.