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Stock A has an expected return of 7 percent, a standard deviation of excepted returns of 35 percent, correlation coefficient with the market of -3.0,
Stock A has an expected return of 7 percent, a standard deviation of excepted returns of 35 percent, correlation coefficient with the market of -3.0, and a beta coefficient of -0.5.
Stock B has an excepted return of 12 percent, a standard deviation of returns of 10 percent, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why?
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