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

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

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