What is the standard deviation of returns for stock A?

What is the standard deviation of returns for stock B?

What is the beta for stock A?

What is the beta for stock B?

Which stock has more total risk?

The stock with the lower standard deviation:

The stock with the lower beta

The stock with the higher beta

The stock with the higher standard deviation

Which stock has more market risk?

The stock with the lower standard deviation

The stock with the higher standard deviation

The stock with the higher beta

The stock with the lower beta

Intro We know the following expected returns for stocks A and B, given different states of the economy: Probability E(ra,s) E(TB,s) 0.1 -0.04 0.05 State (s) Recession Normal Expansion 0.5 0.11 0.08 0.4 0.19 0.12 The required return on the market portfolio is 0.07 and the risk-free rate is 0.02. Intro We know the following expected returns for stocks A and B, given different states of the economy: Probability E(ra,s) E(TB,s) 0.1 -0.04 0.05 State (s) Recession Normal Expansion 0.5 0.11 0.08 0.4 0.19 0.12 The required return on the market portfolio is 0.07 and the risk-free rate is 0.02