Higher risk premium in the market

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Reference no: EM132544530

Use the information in the following table to answer the questions in this self-test:

Standard deviation

Beta

Stock J

30%

0.6

Stock K

10%

1.2

1. Which stock is the riskiest when held alone?

2. Which stock adds the most risk to a portfolio?

3. Which stock will have the higher risk premium in the market?

Reference no: EM132544530

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