Multiple Choice
The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index. Which stock is riskier to a nondiversified investor who puts all his money in only one of these stocks?
A) Stock A is riskier.
B) Stock B is riskier.
C) Both stocks are equally risky.
D) The answer cannot be determined from the information given.
Correct Answer:

Verified
Correct Answer:
Verified
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