Standard deviation of expected returns-security is riskier

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Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of 0.3, and a beta coefficient of 0.5. Stock B has an expected return of 12%, a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why?

PLEASE EXPLAIN THE RESPONSE AND INCLUDE HOW IT WAS CALCULATED USING A FORMULA.

Reference no: EM131303704

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