Average monthly return
for company BGP and AIA for the past 10 years:
BGP: 1.47% AIA: 1.74%Homework For You
The standard deviation
of these returns for BPG and AIA for the past 10 years
BGP: 5.15% AIA: 4.59%
Coefficient of variation
of these returns for BPG and AIA for the past 10 years
BGP: 3.50 AIA: 2.64
Slope coefficient (Beta)
for BRG and AIA
BGP: 0.37 AIA: 1.05
Question:
If you were a portfolio investor, which of these two shares would you consider riskiest? Why?
Options:
AIA because it has the highest total risk
BGP because it has the highest non-diversifiable risk
BGP because it has the highest diversifiable risk
AIA because it has the highest diversifiable risk
AIA because it has the highest non-diversifiable risk
BGP because it has the highest total risk.
