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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
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 |
A | 0.35 | 0.79 |
B | 0.25 | 0.61 |
C | 0.20 | 1.29 |
Which would you choose?
- A,B
- B,C
- C,B
- A,C
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