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You know that Wal-Mart stock is expected to have a standard deviation of 17% and a beta of 1.6 in the next year, and Target
You know that Wal-Mart stock is expected to have a standard deviation of 17% and a beta of 1.6 in the next year, and Target stock is expected to have a standard deviation of 26% and a beta of 0.91. a. (1 pt) Which stock has more idiosyncratic risk?
b. (1 pt) Which stock is riskier in a well-diversified portfolio?
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