The expected rate of return for the stock of Cornhusker Enterprises is 20 percent, with a standard

Question:

The expected rate of return for the stock of Cornhusker Enterprises is 20 percent, with a standard deviation of 15 percent. The expected rate of return for the stock of Mustang Associates is 10 percent, with a standard deviation of 9 percent.
a. Which stock would you consider to be riskier? Why?
b. If you knew that the of Cornhusker stock is 1.5 and the beta of Mustang is 0.9, how would your answer to Part a change?

Beta Coefficient
Beta coefficient is a measure of sensitivity of a company's stock price to movement in the broad market index. It is an indicator of a stock's systematic risk which is the undiversifiable risk inherent in the whole financial system. Beta coefficient...