You have the following data on three stocks: $$\begin{array} { l l l }
\text { Stock } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 20 \% & 0.59 \
\text { B } & 10 \% & 0.61 \
\text { C } & 12 \% & 1.29
\end{array}$$
If you are a strict 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;A.
B) A;B.
C) B;A.
D) C;A.
E) C;B.

Question

You have the following data on three stocks: $$\begin{array} { l l l } 
\text { Stock } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 20 \% & 0.59 \
\text { B } & 10 \% & 0.61 \
\text { C } & 12 \% & 1.29
\end{array}$$
If you are a strict 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;A.
B) A;B.
C) B;A.
D) C;A.
E) C;B.

Quizplus · Accepted Answer

The Answer of You have the following data on three stocks: $$\begin{array} { l l l } 
\text { Stock } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 20 \% & 0.59 \
\text { B } & 10 \% & 0.61 \
\text { C } & 12 \% & 1.29
\end{array}$$
If you are a strict 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;A.
B) A;B.
C) B;A.
D) C;A.
E) C;B.

You Have the Following Data on Three Stocks If You Are a Strict Risk Minimizer,you Would Choose Stock