You have the following data on three stocks: $$\begin{array} { c c c }
\text { Stock } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 0.15 & 0.79 \
\text { B } & 0.25 & 0.61 \
\text { C } & 0.20 & 1.29
\end{array}$$ As a risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.
A) A; B.
B) B; C.
C) C; A.
D) C; B.
E) A; A.

Question

You have the following data on three stocks: $$\begin{array} { c c c } 
\text { Stock } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 0.15 & 0.79 \
\text { B } & 0.25 & 0.61 \
\text { C } & 0.20 & 1.29
\end{array}$$ As a risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.
A) A; B.
B) B; C.
C) C; A.
D) C; B.
E) A; A.

Quizplus · Accepted Answer

The Answer is A

You Have the Following Data on Three Stocks As a Risk Minimizer, You Would Choose Stock ____ If