Stock A has a beta of 1.2 and a standard deviation of 25% on its returns. Stock B has a beta of 1.5 and a standard deviation of 20% on its returns.

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Stock A has a beta of 1.2 and a standard deviation of 25% on its returns. Stock B has a beta of 1.5 and a standard deviation of 20% on its returns. Which stock has the higher systematic risk, and which one has the higher unsystematic risk?

Select one:

a. A; A

b. A; B

c. B; A

d. B; B

e. B; insufficient information for comparison of unsystematic risks