Which of the following is correct?
A) Security Z has the greatest total risk because it has the largest standard deviation.
B) Security X has the greatest total risk because it has the largest beta.
C) Security X has the greatest diversifiable risk because it has the largest beta.
D) Security Y has the lowest total risk because it has the lowest beta.
E) An equally-weighted portfolio of XYZ will have the same systematic risk as the market portfolio.
Correct Answer:
Verified
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