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Question: abc tech has a 125expected return beta 08 and...

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ABC Tech has a 12.5%expected return, beta = 0.8, and a 27% standard deviation. Blue Sky Toys has a 14% expected return, beta = 1.3 and a 23% standard deviation. If the risk free rate is 5% and the expected return on the market is 10%, which stock is riskier for a diversified investor and Why? Please show how to find solution so I will be able to work on the test.

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