Security standard deviation betanbspsecurity c has the


Security Standard deviation Beta

A. .35 1.45

B. .28 1.06

C. .44 1.22

Which of the following is correct?

A. Security C has the greatest total risk because it has the largest standard deviation.

B. Security A has the greatest total risk because it has the largest Beta.

C. Security A has the greatest diversifiable risk because it has the largest Beta

D. Security B has the lowest total risk because it has the lowest beta

E. And equally weighted portfolio of ABC will have the same systematic risk as the market portfolio

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Financial Management: Security standard deviation betanbspsecurity c has the
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