Question
You must add one of two investments to an already well- diversified portfolio. Security A Security B Expected Return = 14% Expected Return = 14%
You must add one of two investments to an already well- diversified portfolio.
Security A Security B
Expected Return = 14% Expected Return = 14%
Standard Deviation of Standard Deviation of
Returns = 15.8% Returns = 19.7%
Beta = 1.8 Beta = 1.5
If you are a risk-averse investor, which one is the better choice?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
