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Standard deviation-portfolio-stock beta
Course:- Financial Management
Reference No.:- EM13942972





Assignment Help >> Financial Management

In isolation, stock A’s standard deviation ( σ ) = 10%, stock B’s σ = 15%, and stock C’s σ = 20%. In a portfolio, stock A’s beta ( β ) = 2, stock B’s β = 1.5, and stock C’s β = 1.0. Which of the following is true?

In isolation, B is riskier than C, in a portfolio, C is riskier than A, in a portfolio, B is riskier than C, in isolation, A is riskier than B




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