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You are a diversified investor trying to decide whether you should invest in Disney or Amgen. They both have betas of 1.25, but Disney has

You are a diversified investor trying to decide whether you should invest in Disney or Amgen. They both have betas of 1.25, but Disney has an R Squared of 73% while Amgens R squared is only 25%. Which one would you invest in?

A. Disney, because it has the higher R squared
B. Amgen, because it has the lower R squared
C. You would be indifferent

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