Consider the following data. Stock Standard Deviation Beta X 5% 1.37 Y 8% 0.61 To minimize risk, you should choose Stock _____ if held individually and Stock _____ if held as part of a well-diversified portfolio. X; Y Y; X There is not enough information to determine which stocks to hold. Y; Y X; X
Consider the following data. Stock Standard Deviation Beta X 5% 1.37 Y 8% 0.61 To minimize risk, you should choose Stock _____ if held individually and Stock _____ if held as part of a well-diversified portfolio. X; Y Y; X There is not enough information to determine which stocks to hold. Y; Y X; X
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Consider the following data.
Stock | Standard Deviation | Beta |
X | 5% | 1.37 |
Y | 8% | 0.61 |
To minimize risk, you should choose Stock _____ if held individually and Stock _____ if held as part of a well-diversified portfolio.
-
X; Y
-
Y; X
-
There is not enough information to determine which stocks to hold.
-
Y; Y
-
X; X
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