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Using the information from the following table, which of the following stock would you recommend for a well-diversified investor and why? AT&T GE Standard Deviation

Using the information from the following table, which of the following stock would you recommend for a well-diversified investor and why?

AT&T

GE

Standard Deviation

25.0%

32.0%

Beta

1.25

0.98

Question 34 options:

AT&T because it has lowest total risk

AT&T because it has lowest systematic risk

GE because it has lowest systematic risk

GE because it has lowest unique risk.

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