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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.

Respuesta :

Answer:

c) B; A

Explanation:

For isolation the stock B is chosen as it contains the less standard deviation but for diversified portfolio stock A is chosen as the less risk is added also standard deviation is not relevant i.e unsystematic diversified risk also it involves less beta as compared with other two stocks

Hence, the correct option is C and the rest options are wrong

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