You have developed the following data on three stocks: Stock 1 standard deviation = 0.25, beta = 0.65; Stock 2 standard deviation = 0.15, beta = 1.10; Stock 3 standard deviation = 0.35, beta = 0.90 If you want to minimize risk, 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. 1;2
• B. 2;1
• C. 3;1
• D. 2;3
• E. 1;1