You have the following data on three stocks: 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.

Stock Standard Deviation Beta

$\backslash$table$[[x,8\%,1\mathrm{.}35],[Y,10\%,1\mathrm{.}05],[Z,12\%,0\mathrm{.}75]]$

$x$;

Z; Z

$x$;$z$

Z; X

$Y$;$Y$