Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of - 0.3, and a beta coefficient of - 1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which security is riskier? Why?© BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
Security A is riskier. Risk is measured by standard deviation and the larger the standard deviation of a stock the more risky ...
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