1. Stock X has an expected return of 4 percent, a standard deviation of returns of 27 percent, a correlation coefficient with the market of 0.4, and a beta coefficient of 0.4. Stock Y has an expected return of 13 percent, a standard deviation of 17 percent, a 0.6 correlation with the market, and a beta of 0.9. Which security would be riskier if it were held as part of a diversified portfolio?

   	a.	Stock X
   	b.	Both would be equally risky.
   	c.	Stock Y