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Stock X has an expected return of 13 percent, a standard deviation of returns of 14 percent, a correlation coefficient with the market of 0.7, and a beta coefficient of 1.1.  Stock Y has an expected return of 6 percent, a standard deviation of 35 percent, a –0.3 correlation with the market, and a beta of –0.6.  Which security would be riskier if it were held as part of a diversified portfolio?   a. Stock Y   b. Both would be equally risky.   c. Stock X

Stock X has an expected return of 13 percent, a standard deviation of returns of 14 percent, a correlation coefficient with the market of 0.7, and a beta coefficient of 1.1.  Stock Y has an expected return of 6 percent, a standard deviation of 35 percent, a –0.3 correlation with the market, and a beta of –0.6.  Which security would be riskier if it were held as part of a diversified portfolio?   a. Stock Y   b. Both would be equally risky.   c. Stock X

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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  1. Stock X has an expected return of 13 percent, a standard deviation of returns of 14 percent, a correlation coefficient with the market of 0.7, and a beta coefficient of 1.1.  Stock Y has an expected return of 6 percent, a standard deviation of 35 percent, a –0.3 correlation with the market, and a beta of –0.6.  Which security would be riskier if it were held as part of a diversified portfolio?
      a.
    Stock Y
      b.
    Both would be equally risky.
      c.
    Stock X
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