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Which investment would be more appropriate for an investor who wants to add this investment to a well-diversified equity portfolio? A. Stock X B. Stock

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Which investment would be more appropriate for an investor who wants to add this investment to a well-diversified equity portfolio?

A. Stock X

B. Stock Y

C. Risk free asset

D. Market portfolio

Which stock would be more appropriate for an investor who wants to hold this stock as a single-stock portfolio?

A) Stock X

B) Stock Y

Beta 1.4 Forecasted return 16.25% 17.35 12.50 3.00 Stock X Stock Y Market index Risk-free rate Standard deviation 23.00 25.00 14.00 1.5 1.0

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