Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business
New Topic  
solina solina
wrote...
Go to Answer
Posts: 1273
Rep: 9 0
6 years ago
You are thinking of adding one of two investments to an already well diversified portfolio.

Security A   Security B
Expected return = 12%   Expected return = 12%
Standard deviation of returns = 20.9%   Standard deviation of returns = 10.1%
Beta = .8   Beta = 2

If you are a risk-averse investor
A) security A is the better choice.
B) security B is the better choice.
C) either security would be acceptable.
D) cannot be determined with information given.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
Read 74 times
1 Reply
Heavy Heart Thank you bio-forums! Heavy Heart
Replies
Answer verified by a subject expert
David_hessDavid_hess
wrote...
#1
Top Poster
Posts: 729
Rep: 35 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

solina Author
wrote...

6 years ago
Smart ... Thanks!
husne
wrote...

Yesterday
Thanks
mmmm_dat_userna
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1277 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 132
  
 260
  
 381
Your Opinion
Previous poll results: Who will win the 2024 president election?