Which stock is riskier? Explain.
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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.
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Which stock is riskier? Explain.
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First, I will remind you that the definition of risk is "The chance that an investment's actual return ...
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