Question: Stock A has an expected return of 7 percent, a standard deviation of expected return of 35 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12 percent, a standard deviation of expected returns of 10 percent, a 0.7 correlation with the market, and a beta coefficient of 1.0.
Which security is riskier? Why?