Solved: Determine which stock is riskier, Other Management

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Determine which stock is riskier

Problem: Which stock is riskier? Explain.

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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Other Management: Determine which stock is riskier

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