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Question
You must add one of two investments to an already well- diversified portfolio.| Security A | Security B |
| Expected Return = 14% | Expected Return = 14% |
| Standard Deviation of | Standard Deviation of |
| Returns = 15.8% | Returns = 19.7% |
| Beta = 1.8 | Beta = 1.5 |
If you are a risk-averse investor, which one is the better choice?
A) Security A
B) Security B
C) Either security would be acceptable.
D) Cannot be determined with information given
Answer
This answer is hidden. It contains 1 characters.
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