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You have the following data on three stocks: Stock--------Standard deviation--------- Beta A ----------------------10% -------------------0.85 B---------------------- 5% --------------------0.55 C---------------------- 8% --------------------0.79 You would choose stock ____

You have the following data on three stocks:

Stock--------Standard deviation--------- Beta

A ----------------------10% -------------------0.85

B---------------------- 5% --------------------0.55

C---------------------- 8% --------------------0.79

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 if you are risk-loving.

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