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Risk of rates of return

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Stock A has an expected return of 7 percent, a standard deviation of expected return of 35 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12 percent, a standard deviation of expected returns of 10 percent, a 0.7 correlation with the market, and a beta coefficient of 1.0.

Which security is riskier? Why?

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Solution Summary

This solution provides calculations for coefficients of variation.

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