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Stock Charlie has more systematic risk than stock Delta, stock Delta has more unsystematic risk than stock Charlie, and it is unclear which stock (Charlie
Stock Charlie has more systematic risk than stock Delta, stock Delta has more unsystematic risk than stock Charlie, and it is unclear which stock (Charlie or Delta) has more total risk. Both stock Charlie and stock Delta have more systematic risk than the market. Which of the following assertions is most consistent with finance theory regarding risk and diversification? Stock Charlie would have a higher expected return than stock Delta and stock Charlie would have a higher expected return than the market A. B. Stock Charlie would have a higher expected return than stock Delta and stock Charlie would have a lower expected return than the market Stock Charlie would have a lower expected return than stock Delta and stock Charlie would have a higher expected return than the market C. Stock Charlie would have a lower expected return than stock Delta and stock Charlie would have a lower expected return than the market Answer not listed or not possible. OE
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