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Suppose you are given the following data on three stocks: Stock Standard Deviation Beta A 12% 0.59 B 15% 0.45 C 8% 0.67 If you
Suppose you are given the following data on three stocks:
Stock | Standard Deviation | Beta |
A | 12% | 0.59 |
B | 15% | 0.45 |
C | 8% | 0.67 |
If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.
a. | C; A. | |
b. | A; A. | |
c. | A; B. | |
d. | B; A. | |
e. | C; B. |
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