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You have the following information about a stock. Answer the following questions with calculations. Standard deviation beta A 32% 2.2 B 10% 1.2 a) Which

You have the following information about a stock. Answer the following questions with calculations.

Standard deviation

beta

A

32%

2.2

B

10%

1.2

a) Which stock has the higher total risk? (1 mark) b) Which stock has the higher systematic risk? (1 mark) c) Which stock will have the higher expected return? (1 mark)

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