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re | https/ldeltastate.instructure.com/courses/25110/quizzes/52052/take D Question 10 7 pts You have the following data on three stocks Stock Standard Deviation Beta 20% 10% 1296 0.59 0.69 1.29 If you are a strict risk minimize, you would choose stoctk Stock ifit is to be held as part of a well-drversified portfolios if it is to be held in isolation and CB B.A Question 11 6 pts Hilpert Inc. 10-year bonds ds yield 5.2% and 10-year corporate bonds yield 7.5%. The maturity risk % Up

Solution

Standard Deviation and Beta, both are the measures of risk

Being a risk minimiser, I would choose Stock A to be held in isolation since it has lowest Beta, i.e. lowest volatility when compared to market and B if it is a part of well diversified portfolio since it has lowest standard deviation

The answer is 1. A, B