Question

You are considering investing in one of the these three stocks: Stock Standard Deviation Beta E...

You are considering investing in one of the these three stocks:

Stock

Standard Deviation

Beta

E

21%

0.58

L

9%

0.67

G

12%

1.30


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.

Answers: One is correct

E; L.

G; E.

E; E.

L; E.

L; L.

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