Common stock of two particular firms
Course:- Financial Management
Reference No.:- EM131347671

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Your research has determined the following information about the common stock of two particular firms.

Stock A         Stock B

            Expected Return:                         10%               15%

            Standard Deviation                        5%                9%

A. What type of risk are we considering here?

B. Is there anything that can be done to reduce this type of risk? If so, what?

C. When is this type of risk most relevant?

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