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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 | 20% | 0.59 | |
B | 10% | 0.61 | |
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.
A; A. | ||
A; B. | ||
B; A. | ||
C; A. | ||
C; B. |
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