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You have the following data on three stocks: Stock Standard Deviation Beta A 18% 1.20 B 15% 0.89 C 12% 1.29 If you are a

You have the following data on three stocks:

Stock Standard Deviation Beta

A 18% 1.20

B 15% 0.89

C 12% 1.29

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.

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