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Stock A has an expected return of 9%, a standard error of 25, and a beta of 1. Stock X has an expected return of

Stock A has an expected return of 9%, a standard error of 25, and a beta of 1. Stock X has an expected return of 12% and a standard error of 28, and a beta of .90 Assuming a normal distribution of possible returns, the above information means (within a roughly 70% probability of occurrence)

a. Stocks A and X have the same loss potential but X has greater profit potential

b. Stocks A and X have the same profit potential but X has less loss potential

c. Stock X has less loss potential and more profit potential than A

d. Stock A has more loss potential and less profit potential X

e. Stocks A and X have exactly the same loss and profit potentials Now, from the perspective of stand alone risk:

a. Stock A has the same level of risk as stock X

b. Stock X is riskier because it has a higher standard deviation

c. Stock X is riskier because it has a higher expected return

d. Stock A is riskier because it has a higher coefficient of variation

e. Stock A is riskier because it has a higher beta

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