Which stock is riskier
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Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier? Explain.
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The solution explains how to determine which stock is riskier
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The riskiness of a stock is gievn from the standard deviation and its beta. If a stock is held ...
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