stocks\' beta is 1.3 with standard deviation 38%. Coca-cola stocks\' beta is 0.8

Question

stocks' beta is 1.3 with standard deviation 38%. Coca-cola stocks' beta is 0.85 with standard deviation 26%. Both stock A and stock B are fairly priced and traded on the US market only.

Which one of the following statement is correct?

Coca-Cola stocks have more systematic risk.

Coca-Cola stocks have more unsystematic risk.

Apple stocks have more systematic risk.

Apple stocks have less unsystematic risk.

Coca-Cola stocks have more systematic risk.

Coca-Cola stocks have more unsystematic risk.

Apple stocks have more systematic risk.

Apple stocks have less unsystematic risk.

Explanation / Answer

Apple stock have more systematics risk

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