Which investment is riskier

Reference no: EM13279586

Stock A has an expected rate of return of 8 percent, a standard deviation of 20 percent, and a market beta of 0.5. Stock B has an expected rate of return of 12 percent, a standard deviation of 15 percent, and market beta of 1.5. Which investment is riskier? Why? (Hint: Remember that the risk of an investment depends on its content.)

Reference no: EM13279586

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