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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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