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Suppose that the stock of Alpha Corporation has an expected return of 10 percent and a standard deviation of returns of 12 percent. The stock

Suppose that the stock of Alpha Corporation has an expected return of 10 percent and a standard deviation of returns of 12 percent. The stock of Beta Corporation has an expected return of 10 percent and a standard deviation of 20%. Explain why Beta Corporation is not necessarily more risky than Alpha Corporation.

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