You are considering investing in one of the these three stocks:
Stock
Standard Deviation
Beta
A
20%
0.59
B
10%
0.61
C
12%
1.29
If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

A. A; B.
B. B; A.
C. C; A.
D. C; B.
E. A; A.


Answer: B

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