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The Figures Below Show Plots of Monthly Excess Returns for Two

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The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index. The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index.   Which stock is riskier to a nondiversified investor who puts all his money in only one of these stocks? A)  Stock A is riskier. B)  Stock B is riskier. C)  Both stocks are equally risky. D)  The answer cannot be determined from the information given. Which stock is riskier to a nondiversified investor who puts all his money in only one of these stocks?

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Contradictory Information

Information or data that presents opposing ideas or evidence relative to a specific point.

Forming Concepts

The process by which individuals learn to categorize information and ideas, making sense of the world through organizing their thoughts.

Constructing Information

Involves actively making sense of data or facts by putting together pieces of knowledge to build understanding or make decisions.

Common Properties

Characteristics or features shared by a group of objects, concepts, or entities.

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