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The annual standard deviation of return on Stock A's equity is 37 percent and the correlation coefficient of these returns, with those on a well-diversified

The annual standard deviation of return on Stock A's equity is 37 percent and the correlation coefficient of these returns, with those on a well-diversified portfolio, is 0.62. Comparable numbers of Stock B are 34 percent and 0.94. Which stock is riskier? Why?

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