Which investment is the riskier and why

Reference no: EM131183577

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 a market beta of 1.5. Which investment is the riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)

Reference no: EM131183577

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