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Stock A has an expected rate of return of 8%, a standard deviation of 20%, and a market beta of 0.5. Stock B has an
- Stock A has an expected rate of return of 8%, a standard deviation of 20%, and a market beta of 0.5. Stock B has an expected rate of return 12%, a standard deviation of 15%, and a market beta of 1.5. Which investment is riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
