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The Figures Below Show Plots of Monthly Excess Returns for Two

Question 20

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The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index. The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index.   -Which stock is likely to further reduce risk for an investor currently holding his portfolio in a well diversified portfolio of common stock? A)  Stock A B)  Stock B C)  There is no difference between A or B D)  You cannot tell from the information given.
-Which stock is likely to further reduce risk for an investor currently holding his portfolio in a well diversified portfolio of common stock?


A) Stock A
B) Stock B
C) There is no difference between A or B
D) You cannot tell from the information given.

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