You are considering investing in one of the these three stocks:

Stock	Standard Deviation	Beta
E	21%	0.58
L	9%	0.67
G	12%	1.30

If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

Answers: One is correct

E; L.

G; E.

E; E.

L; E.

L; L.