Security a has an expected return of 7 percent a standard


Security A has an expected return of 7 percent, a standard deviation of returns of 35 percent, a correlation coefficient with the market of _0.3, and a beta coefficient of _1.5. Security B has an expected return of 12 percent, a standard deviation of returns of 10 percent, a correlation with the market of 0.7, and a beta coefficient of 1.0. Which security is riskier? Why?

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Finance Basics: Security a has an expected return of 7 percent a standard
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