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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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