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You have developed the following data on three stocks: Stock A has a standard deviation of .15 and a Beta of .79. Stock B has
You have developed the following data on three stocks: Stock A has a standard deviation of .15 and a Beta of .79. Stock B has a standard deviation of .25 and a Beta of .61. Stock C has a standard deviation of .10 and a Beta of 1.29. If you are a risk minimizer, you should 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.
| A, A |
| A, B |
| B, B |
| C, A |
| C, B |
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