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You are given the following information: Standard deviation Beta Security A1 30% 0.5 Security A2 40% 1.0 Security A3 10% 1.5 Security A4 20% 2.0
You are given the following information:
Standard deviation Beta
Security A1 30% 0.5
Security A2 40% 1.0
Security A3 10% 1.5
Security A4 20% 2.0
(1) Which security has the greatest total risk? Explain
(2) Which security has the least systematic risk? Explain
(3) Which securities volatility are greater than that of the market? Explain
(4) Which security will require the greatest return? Explain
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