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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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