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Stock X has a beta of 1.6 and Stock Y has a beta of 1.2. Portfolio XY was created by investing in a combination

Stock X has a beta of 1.6 and Stock Y has a beta of 1.2. Portfolio XY was created by investing in a combination of Stocks X and Y; Portfolio XY has a beta of 1.3. Which of the following statements is CORRECT? a. Stock Y has more market risk than Portfolio XY. b. Stock Y has less stand-alone risk than Stock Y. c. Portfolio XY has more money invested in Stock X than in Stock Y. d. Portfolio XY has the same amount of money invested in each of the two stocks. e. Portfolio XY has more money invested in Stock Y than in Stock X.

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