Problem:
Use the following information.
You have the following information on the two securities in which you have invested
|
|
Expected Return
|
Probability
|
Standard Deviation
|
Security Beta
|
Amount Invested
|
|
Kodak
|
15%
|
0.35
|
4.5%
|
1.20
|
$45,000
|
|
Xerox
|
12%
|
0.65
|
3.8%
|
0.98
|
$55,000
|
Which stock is riskier in a portfolio context? Which stock is riskier if you are not considering them in a portfolio? Explain.
Summary of question:
This question is from Finance as well as it explains about comparison between two stocks and computing which of the two stocks has more risk than the other.