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

question 60

Multiple Choice

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.

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Definitions:

IBM

International Business Machines Corporation, a multinational technology and consulting company known for its computer hardware, software, and IT services.

B2B Marketing

The marketing of goods and services directly to other businesses or organizations rather than to individual consumers.

Derived Demand

The demand for a product or service that arises due to the demand for another product or service it helps to produce.

B2C Sales

Direct transactions between a business and the end consumers of its products or services.