The beta and standard deviation of AAA Corp., BBB Corp., and CCC Corp. common stock...

80.2K

Verified Solution

Question

Accounting

The beta and standard deviation of AAA Corp., BBB Corp., and CCC Corp. common stock are given in the following table:

Stock

Beta

Standard Deviation

AAA Corp.

0.43

52%

BBB Corp.

0.82

81%

CCC Corp.

1.24

35%

Which stock is the riskiest to a diversified investor who spreads her portfolio equally across 100 stocks from different industries?

AAA Corp.
BBB Corp.
CCC Corp.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students