Of the following, Stock ________ has the greatest level of total risk and Stock ________ has the highest risk premium.
$\begin{array}{ccc}
\text { Stock}&\text { Beta } &\text { Standard deviation }\
\text { A } & 1.09 & 11\% \
\text { B } & .96 & 13\% \
\text { C } & 1.24 & 18 \% \
\text { D } & 1.13 & 26\% \
\text { E } & .87 & 9\%
\end{array}$

A)A; B
B)B; E
C)C; D
D)D; C
E)C; E

Question

Of the following, Stock ________ has the greatest level of total risk and Stock ________ has the highest risk premium.
$\begin{array}{ccc}
\text { Stock}&\text { Beta } &\text { Standard deviation }\
\text { A } & 1.09 & 11\% \
\text { B } & .96 & 13\% \
\text { C } & 1.24 & 18 \% \
\text { D } & 1.13 & 26\% \
\text { E } & .87 & 9\%
\end{array}$

A)A; B
B)B; E
C)C; D
D)D; C
E)C; E

Quizplus · Accepted Answer

Stock D has the greatest level of total risk due to its highest standard deviation of 26%. Stock C has the highest risk premium as indicated by its highest beta of 1.24, suggesting it is more volatile compared to the market.

Of the Following, Stock ________ Has the Greatest Level of Total