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5) enesome Gulch Mines has a standard deviation of 42% per ear and a beta of +.10. Amalgamated Copper has a standard evation of 31% a year and a beta of +.66. Which is the safer investment for a diversified investor. Explain.
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For a diversified investor, the risk that matters is only the systematic or market risk which is measure by beta and beta is lower in case of Lonesome gulch mines i.e +.10 while it is +.66 in case of amalgamated copper which means higher risk is attached with the amalgamated copper so a well diversified investor would go with Lonesome as systematic risk is low in this investment.

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