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You are given the following information about two stocks: Stock Std. Deviation beta A .30 1.2 B .40 0.9 1. Which stock has more total

You are given the following information about two stocks:

Stock	Std. Deviation	beta
A	.30	1.2
B	.40	0.9

1. Which stock has more total risk?

2. Which stock is more risky to an investor who puts all of their wealth into one stock?

3. Which stock is riskier to a well-diversified investor?

4. Which stock has a higher expected rate of return in equilibrium?

Also, please give the reasons why.

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