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The figures below show plots of monthly excess returns for two stocks, Stock A and Stock B, plotted against excess returns for a market index.

The figures below show plots of monthly excess returns for two stocks, Stock A and Stock B, plotted against excess returns for a market index.

Which stock is likely to have the greater idiosyncratic risk?

Select one alternative:

o. Stock B

o. There is no difference

o. Stock A

o. It cannot be determined

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