Posted by **mamey** on Monday, May 5, 2014 at 4:36pm.

You are thinking of adding one of two investments to an already well diversified portfolio. Security A with expected return of 12%, standard deviation of 20.9%, and beta of 0.8. Security B with expected return of 12%, standard deviation of 10.1%, and beta of 2. 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 Question

## Related Questions

- finance - The expected return on the market is 12% and the risk free rate is 7...
- Finance - Security A has an expected return of 7%, a standard deviation of ...
- FINANCIAL ACCOUNTING - A portfolio manager is managing a $10 million portfolio. ...
- Finance - Consider the following two securities X and Y X y Return- 20.0% Return...
- math/stock - You want to create a $75,000 portfolio comprised of two stocks plus...
- fiance - You want to create a $75,000 portfolio comprised of two stocks plus a ...
- Finance - A portfolio consists of three stocks. The weight, expected rate of ...
- Financial analysis-Need by tomorrow please!!!!!!!! - If the risk-free rate is 6 ...
- Finance - Calculate the return and standard deviation for the following stock, ...
- math - It is equally probable that stock A will have a +10% or -10% rate of ...

More Related Questions