Answer to Question #14690 in Economics of Enterprise for WYNI

Question #14690
You have the following data on three stocks: Stock Standard Deviation Beta A 20% 0.59 B 10% 0.61 C 12% 1.29 If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio. Answer A; A. A; B. B; A. C; A. C; B. 5 points Question 2 Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversified portfolio? Answer Variance; correlation coefficient. Standard deviation; correlation coefficient. Beta; variance. Coefficient of variation; beta. Beta; beta. 5 points Question 3 Inflation, recession, and high interest rates are economic events that are best characterized as being Answer systematic risk factors that can be diversified away. company-specific risk factors that can be diversified away. among the factors that are responsible fo
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