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:

Polynomials

Polynomials are mathematical expressions that consist of variables and coefficients, involving operations of addition, subtraction, multiplication, and non-negative integer exponents.

Linear Equations

Mathematical equations where any variables appear to the power of one and graph as straight lines.

Linear Equations

Mathematical equations that represent straight lines when graphed, typically expressed in the form y = mx + b.

Linear Equations

Mathematical expressions that represent a straight line when plotted on a graph, typically in the form y = mx + b, where m is the slope and b is the y-intercept.