The Figures Below Show Plots of Monthly Excess Returns for Two

question 57

Multiple Choice

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 non-diversified 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) You cannot tell from the information given.

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Definitions:

Love Needs

Human needs related to emotional affection, intimacy, and connection, which are crucial for mental and emotional well-being.

Holistic-Dynamic Theory

A psychological theory that views individuals as whole beings with interconnected psychological needs and stresses the importance of growth, self-actualization, and the dynamic interplay between various aspects of the self.

Maslow's Needs

A hierarchy of human needs proposed by Abraham Maslow, ranging from basic physiological needs to self-actualization.

Holistic-Dynamic Theory

A theory that views human behavior as a result of dynamic interactions between conscious and unconscious factors within the totality of the individual's environment.