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You are considering investing in on of the following stocks: Stock A has a beta of 1.29 and a standard deviation of 20%, Stock B

You are considering investing in on of the following stocks: Stock A has a beta of 1.29 and a standard deviation of 20%, Stock B has a beta of 0.61 and a standard deviation of 10%, and Stock C has a beta of 0.59 and a standard deviation of 12%. If you are a risk averse investor, you would choose Stock _____ and Stock ______ if it is to be held as part of a well-diversified portfolio.

C; B

A; B

B; A

A; C

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