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  • Jul 28, 2012, 12:36 PM
    LostInTheSauce7
    Coporate Finance
    Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -1.5. Security B has an expected return of 12% , a standard deviation of returns of 10% , a correlaion with the market of 0.7, and a beta coefficeint of 1.0.Which security is riskier and Why?

    Can you please show work, I am struggling like crazy with this class.

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