You are thinking of adding one of two investments to an already well- diversified portfolio. security a security b expected return = 14% expected return = 12% standard deviation of standard deviation of returns = 20.9% returns = 10.1% beta = 1.2 beta = 1.2 if you are a risk-averse investor, which one is the better choice?

security a

security b

security b, but only if security b's required return is greater than 12%.

either security would be acceptable because they have the same beta.